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TRANSCRIPT OF PROCEEDINGS FOR THE CANADIAN RADIO-TELEVISION AND TELECOMMUNICATIONS COMMISSION TRANSCRIPTION DES AUDIENCES DU CONSEIL DE LA RADIODIFFUSION ET DES TÉLÉCOMMUNICATIONS CANADIENNES SUBJECT / SUJET: CANADIAN TELEVISION POLICY REVIEW / EXAMEN DES POLITIQUES DU CONSEIL RELATIVES À LA TÉLÉVISION CANADIENNE HELD AT: TENUE À: Conference Centre Centre des conférences Outaouais Room Salle Outaouais Place du Portage Place du Portage Phase IV Phase IV Hull, Quebec Hull (Québec) October 1, 1998 1er octobre 1998 Volume 7 tel: 613-521-0703 StenoTran fax: 613-521-7668 Transcripts Transcription Afin de rencontrer les exigences de la Loi sur les langues officielles, les procès-verbaux pour le Conseil seront bilingues en ce qui a trait à la page couverture, la liste des membr5es et du personnel du CRTC participant à l'audience publique ainsi que la table des matières. Toutefois, la publication susmentionnée est un compte rendu textuel des délibérations et, en tant que tel, est enregistrée et transcrite dans l'une ou l'autre des deux langues officielles, compte tenu de la langue utilisée par le participant à l'audience publique. StenoTran Canadian Radio-television and Telecommunications Commission Conseil de la radiodiffusion et des télécommunications canadiennes Transcript / Transcription Public Hearing / Audience publique Canadian Television Policy Review / Examen des politiques du Conseil relatives à la télévision canadienne BEFORE / DEVANT: Andrée Wylie Chairperson / Présidente Vice-Chairperson, Radio- television / Vice- présidente, Radiodiffusion Joan Pennefather Commissioner / Conseillère Andrew Cardozo Commissioner / Conseiller Martha Wilson Commissioner / Conseillère David McKendry Commissioner / Conseiller ALSO PRESENT / AUSSI PRÉSENTS: Jean-Pierre Blais Commission Counsel / Avocat du Conseil Margot Patterson Articling Student / Stagiaire Carole Bénard / Secretaries/Secrétaires Diane Santerre Nick Ketchum Hearing Manager / Gérant de l'audience HELD AT: TENUE À: Conference Centre Centre des conférences Outaouais Room Salle Outaouais Place du Portage Place du Portage Phase IV Phase IV Hull, Quebec Hull (Québec) October 1, 1998 1er octobre 1998 Volume 7 StenoTran TABLE OF CONTENTS / TABLE DES MATIÈRES PAGE Presentation by / Présentation par: Trinity Television Inc. 1929 PIAC, Public Interest Advocacy Centre/le Centre 1966 pour la défense de l'intérêt public representing/ représentant the National Anti-poverty Organization (NAPO), la Fédération nationale des associations de consommateurs du Québec (FNACQ), One Voice, The Canadian Seniors Network and Rural Dignity of Canada Astral Communications inc. 2012 Le Groupe Coscient inc. 2108 CAFDE, Canadian Association of Film Distributors 2164 and Exporters/ACDEF, Association canadienne des distributeurs et exportateurs de films DGC, Directors Guild of Canada/GCR, La guilde 2197 canadienne des réalisateurs SPACQ, Société professionnelle des auteurs et des 2247 compositeurs du Québec StenoTran 1929 1 Hull, Quebec / Hull (Québec) 2 --- Upon resuming on Thursday, October 1, 1998 3 at 0900 / L'audience reprend le jeudi 4 1er octobre 1998, à 0900 5 8972 THE CHAIRPERSON: Good morning to 6 all. 7 8973 If this were New York City the TV 8 screens would have said the temperature is such and 9 it's a bad hair day. We don't have that in Canada yet. 10 We haven't had any recommendations to that effect, but 11 it is bizarre. They do do that. 12 8974 Madam Secretary, good morning. Will 13 you please call the next participant. 14 8975 MS BÉNARD: Thank you, Madam Chair. 15 8976 The first presentation will be by 16 Trinity Television Incorporated. Mr. Thiessen. 17 8977 THE CHAIRPERSON: Good morning. 18 8978 MR. THIESSEN: Good morning, Madam 19 Chair. 20 8979 I don't have a problem with a bad 21 hair day. I dealt with that issue. 22 8980 THE CHAIRPERSON: Lucky you. You 23 just want a bit of sympathy. 24 PRESENTATION / PRÉSENTATION 25 8981 MR. THIESSEN: You have mine. My car StenoTran 1930 1 fogged up so badly coming into the parking lot that I 2 couldn't see. 3 8982 Commissioners, I thank you for the 4 opportunity to once again appear before you. I am 5 Willard Thiessen and I am here today as the President 6 of Trinity Television Incorporated. We produce a range 7 of Christian television programs that include a 8 nationally broadcast daily Christian talk show of some 9 22 years running, an award winning, internationally 10 broadcast children's program with over 100 episodes, 11 and a brand new, Manitoban, interactive talk TV show. 12 As you are well aware, we are also a persistent 13 applicant for a single faith owned broadcast licence, 14 most recently having applied in the Toronto market. 15 8983 Because of our past and present 16 interest in broadcasting and because of our work in the 17 field of religious and specifically Christian 18 programming, Trinity is able to offer a perspective 19 somewhat unique to these hearings and I sincerely thank 20 you for extending us a personal invitation to be a 21 voice in this hearing. You may refer to our written 22 submission for a more specific listing of our 23 recommendations, but today I have come to talk about 24 three points that are of utmost concern to us as a 25 religious program producer and we believe to you as the StenoTran 1931 1 regulators of such programming. 2 8984 My first point is that Canadians have 3 a measurable thirst for Christian programming that the 4 Commission has only begun to satisfy. 5 8985 Secondly, Canadian content in 6 religious programming is desirable and needed and our 7 broadcasting system must deliberately foster its 8 production. 9 8986 Third, I seek clarity on the nature 10 of applying for religious broadcasting licences. 11 8987 But, in order for me to truly 12 communicate to you about these issues, it is necessary 13 that I first explain to you my understanding of 14 Christian programming, what it is, and to reconcile 15 this with the Commission's own definition of religious 16 programming. 17 8988 I see that religion really has two 18 facets: The first facet being the place, time, the 19 people that are part of where we express our formal 20 worship, teach and indoctrinate, and interrelate. This 21 may be a church, a synagogue, a temple, a quiet place, 22 a hall or even a home. 23 8989 Secondly, a second face, the way in 24 which faith is expressed throughout the life of the 25 person. This will include her/his interaction with StenoTran 1932 1 people, motivations, the responses to life situations 2 and our goals. 3 8990 Traditionally, religious television 4 has been related to the first area, the formal 5 religious ceremony. But we would like to contend that 6 a faith expression will affect all areas of life. 7 Therefore, faith television programs should include all 8 the aspects of that second facet, the complete genres 9 of drama, variety, music, comedy, news, debate and 10 interaction, hospitality, sports, youth, et cetera. 11 Perspectives on educational issues, medical 12 breakthroughs, science and technology, the arts and 13 entertainment, all have religious implications, and are 14 grippingly interesting to viewers. 15 8991 People of faith express their beliefs 16 by how they choose to live. While the Commission has 17 captured this truth in their guiding definition of 18 "religious," namely, "Anything directly relating to, 19 inspired by, or arising from an individual's 20 relationship to divinity, including related morale or 21 ethnical issues," the implementation of the policy has 22 become one dimensional due to the religious program 23 category "040'. The rigidity of this category 24 radically limits programs to church related content, 25 the first facet above, which is only part of the whole. StenoTran 1933 1 The simple solution might be to expand the "Religious" 2 program category into subcategories which reflect a 3 range of genres that would allow us to more accurately 4 describe our programs. 5 8992 If this recategorization does not 6 take place, not only as a regulatory process but more 7 importantly, philosophically, people of faith will 8 continue to be limited to working in the church context 9 and that is the opposite of what we at Trinity 10 Television are all about. The honest truth is, the 11 Christian life is one that is engaged in a process of 12 renewal by Christ, and the beliefs and values of such a 13 life are made real as the renewing takes place 14 throughout the whole of that person's life. 15 8993 Christian television is part of the 16 process of renewal. It encompasses the whole of life, 17 and at its root, is good, healthy and sound 18 programming. It is programming that is in line with 19 God given paradigms of communication and 20 interrelationship. It has a loving and free view of 21 reality and of that which is good and true. It is 22 about the church, but it is also about the world 23 outside the church, for God created them both and all 24 of creation is in need of renewal. I am speaking as a 25 Christian in this, but I believe that at the heart of StenoTran 1934 1 this I also speak for numerous other faith groups. 2 8994 Just an aside, I have spoken to some 3 of my Hindu and Muslim friends in Toronto as we worked 4 on the Toronto application and they expressed 5 considerable interest in that very same area. We were 6 talking and we had a tremendous interrelationship, one 7 another, as to where we were concerned about the 8 opportunity for broadcasting our desire to speak into 9 these various areas. 10 8995 Now, if you are tempted to question 11 the truth or relevance of these ideas, I would 12 encourage you to look again at the study prepared by 13 COMPAS for CTV in June of 1998. When asked the 14 open-ended question, "What is the most important issue 15 in television programming?" 31 per cent of people said 16 that "The lack of morals and amount of violence on 17 television" was the single most important issue in 18 television programming today. This is compared to the 19 second highest consensus of 22 per cent who felt 20 quality was the most important issue. 21 8996 When asked, 96 per cent of this same 22 group of people said that it was important to improve 23 the quality of television programming. The survey did 24 not ask how important it was to improve morality, but 25 the math clearly infers that improving the moral StenoTran 1935 1 climate of television is a most important issue facing 2 the Commission today. 3 8997 Further proof is found in an 4 Environics survey conducted by Trinity Television in 5 1996 in the Toronto marketplace. It found that 80 per 6 cent of the respondents wanted to watch programming 7 that reflected the spiritual renewal of the whole life. 8 The message is that people today want television 9 programming that is constructive, not destructive. 10 They want programs that do not harm their children, 11 their youth, and even their grown-up, adult selves, 12 with false or even perverse portrayals of reality. 13 People want programs that are sound and good, important 14 and helpful. To go back to the language introduced 15 earlier, people want programs that are in line with God 16 given paradigms of communications and interrelation. 17 They want programming that is life-renewing. 18 8998 Religion is not something that can be 19 fit into one day of the week. The popularity of that 20 idea has long faded away and it is time for Canadian 21 programming to reflect spiritual realities. More and 22 more people are rediscovering that they are in fact 23 spiritual creatures who have spiritual needs. They 24 have longings that cannot be met by physical gain. 25 They are getting in touch with themselves and the world StenoTran 1936 1 around them. And as they gain awareness of the 2 importance of the spiritual, they are acting on their 3 beliefs rather than reacting to the physical events 4 around them. Religious beliefs are not beliefs to be 5 sidelined; they are foundational beliefs. 6 8999 As the Commission creates policies, 7 we believe that when you speak about Canadian culture 8 and community, you are talking about spiritual 9 foundations and religious expressions. Every culture 10 and every community expresses the twin ideas of "Who we 11 are" and "How we ought to live." Cultures and 12 communities are fundamentally religious. Every view 13 and every value a person holds comes from their heart 14 and their mind and is filtered and read through their 15 own belief system. They are religious expressions. As 16 you prepare the policies that take us into the next 17 millennium, you must keep these truths to the fore. 18 9000 Starting from such a premise will 19 result in a profitable return, both in the communities 20 and we believe to the broadcasters. There is no 21 question that viewers want good, wholesome programming; 22 programming that has been renewed by spiritual truth. 23 The question is "Where will it co,me from?" 24 9001 Where does it come from? One day I 25 would like that answer to be Canada. Why? Because I StenoTran 1937 1 believe we are different. We are a distinct people 2 with distinct world views and we deserve to hear our 3 own stories. Right now, in Canada, Canadian 4 programming supplements American programming schedules. 5 Whom does it serve? Is this the ideal? 6 9002 As a Christian program producer I 7 need honest answers to these questions. I need answers 8 because these questions affect my organization on a 9 daily basis. We are not in this business to make 10 money. All we want is to make good, meaningful 11 programs and we have a passion to do this. But like 12 many other Canadian program producers there is a wall 13 between us and our objective and that wall is a lack of 14 funding and a lack of Canadian distribution; and I 15 referred to these problems in our written submission 16 earlier. 17 9003 MS BÉNARD: Mr. Thiessen, could I ask 18 you to slow down a bit. Our translators are having a 19 hard time following you. 20 9004 MR. THIESSEN: I am sorry. I tend to 21 speak too quickly on television as well. I am sorry. 22 9005 The Commission has effectively 23 implemented the religion broadcast policy to benefit 24 Canadians on a number of occasions. In 1995 the CRTC 25 licensed CJIL in Lethbridge, Alberta. In 1997 you StenoTran 1938 1 refused approval of several American religious 2 satellite applicants, who were without a Canadian 3 sponsor. Recently, you licensed CTS, the Crossroads 4 Television System in the Toronto market. For all these 5 things, we are very grateful. 6 9006 However, there remain problems in the 7 application process that we would like to address. So 8 far we have been denied five times and it has been 9 rather humbling. But we still have a goal of obtaining 10 a religious broadcasting licence. 11 9007 We are a relatively small, non-profit 12 organization, and have spent hundreds of thousands of 13 dollars on the application process. With each 14 application we have made every effort to meet the 15 communicated requirements as outlined by the CRTC for 16 licence approval. 17 0910 18 9008 With all of our experience, some of 19 the Commission's expectations and priorities in 20 granting licences to religious broadcasters are still 21 unclear. The application process has impacted us. The 22 more we work at it, the more intent we find ourselves 23 desiring a station format that will best meet the broad 24 needs of the community, that will encourage Canadian 25 production, and that will minimize or preferably StenoTran 1939 1 eliminate foreign brokered programming. 2 9009 In our most recent application for 3 Toronto, we evidenced a commitment to Canadian 4 programming by promising to have no foreign brokered 5 programming. This seemed, reasonably, to be an action 6 that made a significant contribution toward the goal of 7 the Broadcast Act. 8 9010 By contrast, CTS in their application 9 expressed the intention of selling a significant 10 proportion of brokered time to foreign programmers, 11 both in prime time and elsewhere in their schedule. 12 9011 We are uncertain of the Commission's 13 views on foreign programming, and the result of this 14 decision seems to compromise the Broadcast Act. 15 9012 We do plan to apply again. That is 16 why this is such a critical issue. We need to clearly 17 understand what your expectations are and how you 18 prioritize your concerns. What I am getting at is that 19 the CTS application now seems to be the template for a 20 winning religious broadcasting system. 21 9013 Is that in fact the case? If so, I 22 want to submit for your consideration that prime time 23 programming on CTS is prominently foreign and 24 prominently reflects the formal aspects of religion. 25 What we really need and hope for is an open dialogue StenoTran 1940 1 with the Commission on the implication of the CTS 2 licence for future religious licence applications. 3 9014 We want to be religious; we want to 4 be Canadian; and we want to be about the whole of life. 5 We will continue to apply because we believe, and have 6 measurable reason to believe that that is what 7 Canadians want. And we hope that that is what the CRTC 8 wants and will respond to. 9 9015 In conclusion -- and I again refer 10 you to our written submissions -- I ask for five 11 things: 12 9016 1. Note that cultures and 13 communities are concerned with "Who we are" and "How we 14 ought to live" and are therefore fundamentally 15 religious. Likewise, be aware that the views and 16 values of a person or a group are, by definition, 17 religious expressions. Religion is not limited to 18 church but encompasses all of life. 19 9017 2. Create divisions within the "040" 20 category so that it better reflects spiritual reality 21 and allows religious programs to be more appropriately 22 described. 23 9018 3. Please protect Canadian 24 television. Strongly encourage all broadcasters to 25 become investors into excellent Canadian programming. StenoTran 1941 1 9019 4. License additional Christian 2 broadcasters and so create a climate favourable to the 3 production of Canadian Christian programming -- or 4 should I say, Canadian religious programming. 5 9020 Furthermore, solidify and clarify 6 your licensing priorities to allow for confidence in 7 the application process. 8 9021 5. Please listen to the people of 9 Canada and favour public production funding of 10 programming that is good, moral and life renewing. 11 Discourage programming that is bad, false or perverse 12 in its view of reality. 13 9022 Our prayers are sincerely with you as 14 you endeavour to make these ideals more real. 15 9023 THE CHAIRPERSON: Thank you, Mr. 16 Thiessen. 17 9024 Commissioner Cardozo, please. 18 9025 COMMISSIONER CARDOZO: Thank you, 19 Madam Chair. 20 9026 Good morning, Mr. Thiessen. It is 21 nice to see you again. The last time we met was at the 22 licensing hearing that you talked about here, which was 23 last December. 24 9027 Of course, CTS, as I understand it, 25 was just launching last night. StenoTran 1942 1 9028 MR. THIESSEN: Last night was their 2 opening day. 3 9029 COMMISSIONER CARDOZO: So it is 4 somewhat significant that we talk this morning. 5 9030 With regard to your specific 6 recommendation -- I made note of all of them, as we do. 7 In terms of the issues you have raised about wanting 8 clarification, this is an appropriate time for you to 9 raise them, but this is a forum where you answer the 10 questions, not us. 11 9031 So I will not answer those detailed 12 questions, and suggest that there are other avenues for 13 you to meet with the staff of the Commission to carry 14 on those discussions. We certainly make note of the 15 concerns you raised. 16 9032 What I would like to do with you in 17 particular, sir, given your background, your leadership 18 in religious broadcasting -- I hope I am not going too 19 far as to say certainly a leader in Canada in moral and 20 ethical issues. 21 9033 I want to get some of your 22 impressions -- if I can use the term -- sort of do a 23 bit of a "blue sky" exercise with you, raising some of 24 the issues you have raised. On page 5 you say: 25 "As the Commission creates StenoTran 1943 1 policies, we believe that when 2 you speak about Canadian culture 3 and community, you are talking 4 about spiritual foundations and 5 religious expressions." 6 9034 I want to ask you, as somebody who is 7 both a force in religion and moral issues, as well as 8 on television, to give us your thoughts about how you 9 see Canadian programming at large. 10 9035 If you were the CRTC alone and you 11 had a few years to reconstruct the whole system, what 12 are the kinds of things you would like to see on TV? 13 9036 MR. THIESSEN: It is pretty broad. 14 Certainly we think about this a lot, not from your 15 perspective but from the perspective of what we would 16 like to see. 17 9037 One of the things that I think 18 disturbs us at times is the funding arrangements. We 19 refer to it in our letter. We believe that some of the 20 funding that has come through the Canadian system has 21 fostered programming or production of some programs 22 that are fringe programs and continue to speak to just 23 a fringe group of people. 24 9038 I don't want to particularly refer to 25 names of productions, but we have had some produced in StenoTran 1944 1 Winnipeg that very few people watch, that really are 2 not financially viable. 3 9039 We have some great programs produced 4 in Canada. I have no problem with that. But we also 5 have some that are really fringe and the outside realm 6 of things. Some of these producers and directors 7 continue to get finances and continue to produce these 8 programs. 9 9040 One of our thoughts is that we would 10 like to see the Commission encourage programming that 11 becomes financially viable, where the programs 12 eventually start paying for themselves. Maybe the 13 directors and writers should get money at the beginning 14 of the thing, but eventually if they are not reflecting 15 the mores and desires of the country, that possibly 16 they not be encouraged to continue to produce some of 17 the programs that they do by accessing the funding 18 programs that are so much in place. 19 9041 I don't believe that putting 20 restrictions on producers, in the sense of deciding for 21 them what morality is, will help. I know that we can't 22 put a lot of restrictions in there. 23 9042 There is a dearth, a lack of -- 24 9043 We tend to -- and I am looking at the 25 American side of things. Of course, they come in StenoTran 1945 1 strongly, but the programs now are always pushing the 2 edge of what is acceptable in our society. We are 3 always pushing the edge. There is a part of all of us, 4 I guess, that likes to look at the dark side, like to 5 look at the seamy side of life. 6 9044 We think that that is the only area. 7 But I refer to the fact that programming like "Touched 8 by an Angel" is affecting our community in a strong 9 way. 10 9045 We were watching a movie last night 11 on one of our local channels. It was a movie aired on 12 a Canadian station. I don't know who produced the 13 movie. But it was very life giving, life producing and 14 I found myself very intrigued. 15 9046 I think there are many good programs 16 coming out of television now. I think there are, and I 17 encourage those kinds of things. But how, as a 18 Commission, you discourage or encourage -- encourage 19 the right and discourage the wrong -- I really don't 20 know. 21 9047 But somewhere there must be a way to 22 respond to what people -- maybe declaring; people are 23 motivating us to move to those things that build up 24 rather than tear down. 25 9048 COMMISSIONER CARDOZO: What are your StenoTran 1946 1 thoughts about the quote you have here from the COMPAS 2 CTV Poll: 3 "The lack of morals and amount 4 of violence on TV was the single 5 most important issue in TV 6 programming today." 7 9049 Do you agree with that? 8 9050 MR. THIESSEN: I think, by and large, 9 that is a concern. But I believe that television 10 reflects a community. I don't think it is television's 11 fault. I believe it also reflects the community. 12 9051 Speaking from across the line, I 13 noticed some of the commenting that was going on as a 14 result of the President's difficulties across the line. 15 Some of the commentators mentioned the fact that it 16 seems as though America is in a moral vacuum in many 17 ways. They were speaking about that. 18 9052 I think that, as a country, our 19 morality has been -- 20 9053 As a religious person, I am very 21 concerned about where our morality is going. 22 9054 COMMISSIONER CARDOZO: With the 23 coverage of the whole scandal, or whatever you call it, 24 in the United States, do you think we are different 25 from that? StenoTran 1947 1 9055 If we had a similar situation here, 2 would it have been covered in the same exhaustive way? 3 9056 MR. THIESSEN: I don't think our 4 television commission or our television -- 5 9057 Well, we may -- 6 9058 I don't think we are quite as open 7 about some of those things. We do have the problems, 8 but I don't think we talk about them as openly as the 9 Americans do. 10 0920 11 9059 COMMISSIONER CARDOZO: Rightly so or 12 wrongly so? 13 9060 MR. THIESSEN: I don't know that it 14 always serves our best interests to reveal all of the 15 garbage that goes on because we don't talk about the 16 good things as much as we do about the bad things. 17 9061 COMMISSIONER CARDOZO: Yes. 18 9062 MR. THIESSEN: You know, as a result 19 I think we have such a focus -- I was actually wanting 20 to include that part in my statement, talking about the 21 American problems out there, where people say we are a 22 total moral vacuum. 23 9063 I personally don't believe we are, 24 but I think we tend not to be aware of where we are not 25 and we are not as aware of -- in fact, I believe StenoTran 1948 1 there's a great deal of morality in Canada. I believe 2 there's a great deal of desire. There's a lot of 3 wonderful things happening. I would like to portray 4 those kinds of things. 5 9064 You know, the kinds of things that -- 6 I mean Reader's Digest finds stories continually about 7 people that are worthy of note, that have made a mark 8 on their community. A child that has saved his 9 father's life is in one of the recent issue where a 10 four or five year old was out fishing with his dad. 11 His dad broke his leg and he found his way out. 12 9065 Those are such positive, wonderful 13 things. I believe our society is full of them. I 14 really believe that. There is a tremendous spiritual 15 desire that is rising in our community and I think in 16 some ways it is being reflected by Hollywood with 17 "Touched by an Angel", some of those areas, but I think 18 it's much stronger than the media is even aware of. I 19 think it's stronger than certainly Hollywood is aware 20 of. I think they are almost the last ones to find out 21 what's going on here. 22 9066 COMMISSIONER CARDOZO: You think 23 television doesn't reflect enough of the positive. 24 9067 MR. THIESSEN: I don't think it does. 25 9068 COMMISSIONER CARDOZO: How about news StenoTran 1949 1 on television? I'm thinking both of Canadian news and 2 international news coverage of conflict. 3 9069 MR. THIESSEN: I would like to see 4 more positive news. I mean, I think news is absolutely 5 vital. I think it's wonderful, although the news 6 channels are -- well, some people talk about the fact 7 that we are always looking for news stories and we will 8 find anything sensational and project that. 9 9070 I personally am in favour of the news 10 channels. I think they're great, but I believe there 11 are some areas of positive news that I would like to -- 12 you know, I don't think people are only looking for -- 13 and we are. The news does pick up some of the other 14 stories, but I think there's more good stories to pick 15 up. 16 9071 COMMISSIONER CARDOZO: When you are 17 talking about sort of the negative news or violence on 18 TV, one of the reasons it happens is that there's a 19 market for it. 20 9072 MR. THIESSEN: I know that. 21 Absolutely. It's just like why is Gerry Springer on? 22 Why do people watch Gerry Springer? It's very little 23 social redeeming value that comes out of it. 24 9073 I think that the people that are on 25 this program are fringe people. I don't think they StenoTran 1950 1 represent the majority of people in our society. They 2 go out of their way to look for subject matter that 3 they believe is at the edge. I find that -- 4 9074 COMMISSIONER CARDOZO: What do you do 5 when it is a very popular program, and among young 6 people? 7 9075 MR. THIESSEN: Be aware of where it's 8 leading. I don't think the CRTC can legislate 9 morality. I don't believe this is the place to do it. 10 I don't believe that the legislature or that Parliament 11 can legislate it. I don't believe that our local 12 government can legislate. I don't believe that. 13 9076 I think by encouraging -- you know, 14 secular television, not secular, commercial television 15 is about money. It's about an audience. It's about 16 doing those things. PBS in the States is not about 17 that. PBS is about doing things are right. 18 9077 I believe religious television by and 19 large has the interest of the community at heart. I 20 really believe that. I don't believe that CTS or if we 21 were licensed or CGIL is not the intent -- I think that 22 sometimes we are perceived as being out to try to get 23 our message across which is to convert everyone to 24 becoming like we are. 25 9078 I don't think that that is the StenoTran 1951 1 primary purpose. I believe that certainly is a part of 2 what goes on, but to try to bring help to society, all 3 of us wouldn't have the number of counsellors on the 4 telephone helping people -- I mean, we spend a lot of 5 resources in simply helping our community. There's a 6 lot of resources that are spent to try and encourage 7 people. 8 9079 We are not asking them what faith or 9 what area they are from at all, but it is trying and 10 desperately desiring to be an input of hope, of 11 encouragement, speaking into despair, speaking 12 possibility into people's lives. 13 9080 I really think that those are the 14 areas where the Commission can strongly help by helping 15 those -- and money isn't where it's at for us. We are 16 not out to make millions of dollars. We don't have 17 shareholders that are demanding -- the people that 18 support our program are giving their money freely. 19 They don't want 10 per cent back or 5 per cent or 20 20 per cent back at the end of the year. 21 9081 They are content to give it because 22 they believe that something that's happening is going 23 to affect their lives and I believe that religious 24 television could have a very strong input into our 25 society, I believe that, and without the requirement StenoTran 1952 1 for funding. 2 9082 COMMISSIONER CARDOZO: So you are of 3 the view that with some of the, if I can call it, 4 harmful programming that you are concerned about that 5 the Commission shouldn't be bothered so much about 6 that, but that if we had more of your type of positive 7 programming that that would -- 8 9083 MR. THIESSEN: I think that would 9 raise the water line. I think that providing an 10 alternative is always an important thing. Obviously 11 Canadians feel that way or they wouldn't have the CBC. 12 I mean, the CBC has always been an area that isn't 13 looking only at ratings, but trying to foster a 14 Canadian culture, encouraging those things that are 15 Canadian. 16 9084 I understand the view of the CBC is 17 to move more and more towards Canadian programming. 18 That is an expression of -- now, that's helping a 19 Canadian culture. That is a concern of the Canadian 20 government. Oddly, the similar concern, you say, how 21 do I now help not just Canadian culture which I believe 22 does include a religious content? 23 9085 You can't separate culture and faith. 24 It's impossible to separate those. It's been kind of a 25 no, no. It has been a taboo subject to actually StenoTran 1953 1 encourage the faith side of things. 2 9086 COMMISSIONER CARDOZO: But we do sort 3 of have this, which is the American notion of 4 separating church and state. Doesn't that -- 5 9087 MR. THIESSEN: I think that's a 6 very -- we have got this notion that we are separating 7 it. What we are doing is excluding it. I don't think 8 you separate faith from life because everything we all 9 do are faith perspective and motivates what we do. All 10 of us. There's not a person that isn't motivated or we 11 live our lives out of it, the way we spend our money. 12 9088 The job I take is affected by my 13 faith or by my perspective of living. I think we 14 should acknowledge that. I think that there's a fear 15 of acknowledging faith in our society. There's a fear 16 of admitting that it's real, a fear of admitting that 17 somehow the intellectual side of things of our society 18 have become so prominent that we have forgotten what's 19 at the heart is the issue. I could get passionate on 20 this. 21 9089 COMMISSIONER CARDOZO: I'm convinced 22 that if we did a poll of young children and asked them 23 who's name comes to mind at Christmas time, I think 24 most kids would pick Santa Claus over Jesus Christ. 25 9090 MR. THIESSEN: Precisely, which is StenoTran 1954 1 the commercial over the faith side. 2 9091 COMMISSIONER CARDOZO: Right. Could 3 we talk for a couple of minutes about children's 4 programming. You have mentioned in your written 5 submission that you have got a new children's show 6 called "Sun Shiny Day". 7 9092 MR. THIESSEN: Yes. 8 9093 COMMISSIONER CARDOZO: Am I 9 pronouncing that right? 10 9094 MR. THIESSEN: "Sun Shiny Day" is 11 absolutely right. 12 9095 COMMISSIONER CARDOZO: Okay. Tell me 13 what that's about and what you are doing in that that 14 is not out there already. 15 9096 MR. THIESSEN: "Sun Shiny Day" is -- 16 it's more about the personalities that put shows 17 together than anything else. It's actually our 18 daughter that produces the program. She has won some 19 awards on it in the United States, not in Canada -- 20 9097 COMMISSIONER CARDOZO: It's your 21 "Daughter Shiny Day". 22 9098 MR. THIESSEN: It's my daughter. She 23 is a sun shiny day, yes. 24 9099 COMMISSIONER CARDOZO: Okay. 25 9100 MR. THIESSEN: She has got a very StenoTran 1955 1 bright personality. She writes a lot of great music 2 for children. She hosts the program, works with 3 puppets, works with kids and talks about life from a 4 faith encouragement perspective, not just -- I think 5 that, you know, there's a lot of things about take 6 it -- you know, don't do this, do that. There's that 7 kind of programming. 8 9101 There's an element that I think faith 9 brings into programming where there's hope. I believe 10 that the "Sun Shiny Day" brings out a dimension of 11 possibility and of hope that I think makes it different 12 or gives it a different perspective that good 13 Christian --- that good children's programming -- 14 there's great children's programming out there that is, 15 you know, is morally right and teaches values and so 16 on. 17 9102 There's an element I think faith can 18 bring which produces possibilities into people's lives 19 and that's something I believe the program does 20 strongly. The response we have had -- it's been airing 21 in some areas of the former Soviet Union. 22 9103 We are working with some people out 23 there that come back and mention how positively the 24 program is viewed by the household which is surprising 25 because out here it is children that would watch the StenoTran 1956 1 programming. 2 9104 COMMISSIONER CARDOZO: Yes. You have 3 talked a bit about Canadian culture and television 4 reflecting that. What are your thoughts about whether 5 television does justice to reflecting Canada and 6 building or encouraging a sense of nationhood and who 7 we are. Can we do that given the American channels 8 that we have? 9 9105 MR. THIESSEN: I think we just are -- 10 I think we are working at it. You know, there's a 11 desire in some people's minds and hearts across this 12 land to bring a sense of national unity or of working 13 together. I speak from my point of view on our 14 program. We have had a number of people on the "It's 15 You" day program, the daily program. 16 9106 We have had people from France -- I 17 mean from the French part of our country come out and 18 speak. We have had people from Hull, from Montreal. 19 For faith people, this is an issue, what our country 20 does. This is an issue for us. We are very concerned 21 about division. 22 9107 Faith to us means resolution. It 23 means working together. It means bringing down walls 24 of division among us. 25 0935 StenoTran 1957 1 9108 I believe that faith, perspectives on 2 television can help to bring unity to our country. I 3 believe that. I don't think we have always seen that 4 in the past. I think that some faith that people -- 5 and I think the problem is we have had particular 6 people that have been maybe very vocal and have said 7 things that don't reflect the overall community, the 8 faith community, but I find within the faith community 9 a strong desire of working together, of understanding 10 one another. 11 9109 I personally -- I mentioned this at 12 the hearings in Toronto, that the very fact that we 13 were required to present a balanced programming format 14 to the Commission as a Christian station we would have 15 to bring people from other faiths to work alongside of 16 us. That very thing has required me to rub shoulders 17 with people I would not have rubbed shoulders with in a 18 natural part of life. Those relationships are going on 19 today. 20 9110 We don't have an application and I 21 will never have one in Toronto, and yet I have 22 continued a relationship with some of the people that 23 came out of that process because I have never 24 understood something I never understood before. Now, 25 there is where you have done something to bring StenoTran 1958 1 something, not to the whole nation, but to my heart 2 that I think is a positive thing. 3 9111 Often we want to change everybody. I 4 think life is about changing individuals, working with 5 individual hearts, working with individual lives. If 6 Christian television -- if we were looking only at the 7 masses, I would be very discouraged about going in and 8 saying we are going to change our whole world. 9 9112 But I believe we can change 10 individual lives. I think we can change perspectives 11 for some people and bring hope to some people that are 12 in absolute despair today. I believe they can be 13 helped. I think that is what we are saying, that there 14 is somebody we want to speak to. We are speaking to 15 some and with the opportunity we would speak to more. 16 9113 COMMISSIONER CARDOZO: Speaking about 17 crossing cultural lines, we had a presentation a couple 18 of days ago by Television Northern Canada, which is an 19 aboriginal service. They were talking about the need 20 for Canadian television to better reflect aboriginal 21 peoples and we were trying to think of examples of 22 where television does reflect aboriginal peoples in a 23 positive light. We didn't have many thoughts. What 24 are your thoughts about that question, whether 25 television can or should reflect aboriginal people and StenoTran 1959 1 whether faith programming can do anything in that area? 2 9114 MR. THIESSEN: Yes. I think it 3 should. I think, obviously, there are a few programs 4 that reflect some of the aboriginal perspectives that I 5 have seen at various times. I know there are a number 6 of aboriginal people that want or will be on television 7 more than are already. 8 9115 Certainly when we were making our 9 application we had a number of leaders in the 10 aboriginal community that expressed a strong desire in 11 knowing who they are and knowing what their impact is 12 in the communities that they work in today, I believe 13 they would make excellent producers of programs that 14 would reflect their community and the desires that they 15 have for their community. 16 9116 I believe television can have a very 17 positive input in the lives of people, just as I 18 believe it can have a negative input. I believe it is 19 morally relevant. Television is that. It is 20 culturally relevant because it reflects us as people. 21 9117 Jerry Springer does reflect a part of 22 our society and some of us want to know what is going 23 on there obviously. But I believe that there are also 24 other people that are looking at other programming and 25 it may not be the majority, but there are people StenoTran 1960 1 looking at other programs and they are being affected. 2 I believe they are the people that if you met them in 3 the community they are the ones that are building our 4 communities up. They are the ones that are a very 5 positive force for our community. 6 9118 I really believe that and the people 7 that are looking for those values are the ones that are 8 making a mark and a difference in our society in a 9 strong way. 10 9119 COMMISSIONER CARDOZO: Thank you very 11 much. That has really helped us understand some of 12 these wider issues from the perspective that you have 13 been working in. I hope you keep in touch with us. 14 You talked about templates. Some people may interpret 15 things to be templates, but I think as the decision in 16 Toronto was a competitive process there will always be 17 competitive processes I think, so keep that in mind 18 too. But keep in touch with us and keep reminding us 19 of the issues that you have raised today. Thank you 20 very much. 21 9120 MR. THIESSEN: Thank you very much, 22 Commissioners. 23 9121 COMMISSIONER CARDOZO: Thank you, 24 Madam Chair. 25 9122 THE CHAIRPERSON: Thank you. StenoTran 1961 1 9123 Commissioner Pennefather. 2 9124 COMMISSIONER PENNEFATHER: Good 3 morning. 4 9125 I would like to also take advantage 5 of you being here just to briefly look at another 6 component of television. I noticed here you talk about 7 the paradigm communication and inter-relation and then 8 you have launched a new interactive talk TV show. 9 9126 What are your thoughts on television 10 as a communication among people? Is this a growing 11 need where, in addition to the voyeuresque show, is 12 there a place that we should be considering more 13 carefully for the kind of program that allows people to 14 talk to each other? 15 9127 MR. THIESSEN: We are just in the 16 process. This is just happening. A local station 17 offered us an hour of time a day and we are very 18 reasonable. In fact, they are helping us get going on 19 this. Eventually they hope to get some commercial 20 benefit out of it, but they are actually investing in 21 us at this time. 22 9128 We have been talking about this and 23 we did some -- speaking of the community, talked about 24 what we wanted to get at here. We found a strong 25 response from our community, saying we would like to StenoTran 1962 1 find opportunity to interact with people. 2 9129 Now, it is going to be telephone 3 interaction at this point in time. We still don't have 4 the internet at the place where we -- and I think that 5 day will come, where people will log on and we may not 6 get a sharp picture all the time, but I think that day 7 is coming. 8 9130 But there is a desire and I think an 9 interest. We tend to have only specialists speak to 10 us. We have got the impression that anyone that isn't 11 a specialist can't make a difference in our world. I 12 think the majority of the work that is done in our 13 world is done by normal people that aren't specialists. 14 9131 Children are raised by normal moms, 15 not by psychologists and sociologists. Most of them 16 are raising wonderful kids. The impact that is made in 17 our community is made by -- I mean the greatest idea -- 18 a lot of the good ideas come out of just normal people 19 that are working behind the scenes in factories. Some 20 of the brightest ideas come out of guys that are 21 working on the floor. As an engineer when I was 22 working, back in the days designing rocket payloads, I 23 went to the technicians because they knew how it fit. 24 We could design it, but they knew how it fit. I think 25 there is a whole world out there that knows how things StenoTran 1963 1 fit because they are working it. 2 9132 I believe interactive television -- 3 we want to interact. The more populous we become, it 4 seems the more separated we are. We interacted more on 5 the farm back in the old days when we lived a mile 6 apart than we do when we live -- I can throw a stone 7 past four houses on my street and we don't talk enough. 8 I think there is a longing in the hearts of people to 9 communicate, just a desperate desire to know that they 10 have a voice, to know that they have value, to know 11 that they have worth. 12 9133 COMMISSIONER PENNEFATHER: Thank you 13 very much. 14 9134 Thank you, Madam Chair. 15 9135 Counsel. 16 9136 MS PATTERSON: Thank you, Madam 17 Chair. 18 9137 Good morning, Mr. Thiessen. 19 9138 MR. THIESSEN: Good morning. 20 9139 MS PATTERSON: In your written 21 submission and also this morning in your oral 22 presentation to the Commission you mentioned creating 23 divisions within the 040 category, so that it better 24 reflects spiritual reality and allows religious 25 programs to be more appropriately described. I am StenoTran 1964 1 wondering if you have a specific proposal for the 2 expansion of the religious programming category into 3 subcategories? 4 9140 MR. THIESSEN: Actually, I would like 5 to see them have virtually the same subcategories that 6 the Commission has for other programs. 7 9141 For instance, in our application for 8 the station in Toronto we wanted to show that our 9 station would reflect a diversity of programming, that 10 we showed news, we showed drama, we showed other things 11 and yet as a religious station we are required to show 12 040 for everything. 13 9142 But we felt that a station that 14 projects a diversity of programming would have greater 15 interest for the community and we would like to reflect 16 that in our application. So that's where -- you know, 17 children's programming, et cetera, just as we show it 18 in the -- something to that nature we think would be 19 beneficial in reflecting what we would like to do in an 20 application. 21 9143 MS PATTERSON: So would it be fair to 22 say that at page 2 of your oral presentation today, 23 down at the bottom you list a group of genres, would 24 those reflect the type of subcategories that you are 25 thinking of? StenoTran 1965 1 9144 MR. THIESSEN: I think that's maybe 2 further than -- what is it, 12 or 13 in the Commission 3 right now? It has been a while since I looked at 4 these. 5 9145 I wouldn't say this is the full 6 extent, but to some degree reflecting the kinds of 7 programming possibilities, yes. 8 9146 MS PATTERSON: Thank you. 9 9147 Thank you, Madam Chair. 10 9148 THE CHAIRPERSON: Thank you. 11 9149 Thank you, Mr. Thiessen. 12 9150 I hope we get a sunshiny day later. 13 9151 MR. THIESSEN: It is coming. It is 14 going to be windy, but sunny. Thank you. 15 9152 THE CHAIRPERSON: Thank you. 16 9153 Madam Secretary, would you invite the 17 next participant, please. 18 9154 MS BÉNARD: Thank you, Madam Chair. 19 9155 The next presentation will be by la 20 Fédération nationale des associations de consommateurs 21 du Québec, the National Anti-poverty Organization, One 22 Voice, The Canadian Seniors Network and Rural Dignity. 23 I would invite Mr. Reddick to please come forward. 24 9156 THE CHAIRPERSON: Good morning, Madam 25 Vallée and Mr. Reddick. Proceed when you are ready. StenoTran 1966 1 PRESENTATION / PRÉSENTATION 2 9157 MR. REDDICK: Hi. How are you this 3 morning? 4 9158 THE CHAIRPERSON: We are fine, 5 despite the bad hair day. 6 9159 MR. REDDICK: My name is Andrew 7 Reddick and I am with the Public Interest Advocacy 8 Centre. We are representing FNACQ et al today. With 9 me today is Marie Vallée of FNACQ. 10 9160 First., we would like to thank the 11 Commission for inviting us to appear today. This is an 12 important policy proceeding and it will shape our 13 broadcasting system for years to come. With limited 14 resources we have not been able to address all the 15 issues raised by the Commission and other parties in 16 this proceeding. 17 9161 In our written submissions we 18 addressed a number of issued raised by the Commission 19 which we think are of particular concern to our groups 20 and we are going to address some of those today. 21 9162 In general with respect to matters 22 relating to content/viewing requirements, 23 contributions, local expression and underrepresented 24 categories, FNACQ et all believe that these policies 25 have been very successful and should be continued as we StenoTran 1967 1 move forward. If there is to be change, it should be 2 progressive as opposed to regressive in nature. As 3 such, we generally support increasing levels of 4 contribution to these initiatives. 5 9163 Conventional over-the-air 6 broadcasting constitutes a universally basic 7 broadcasting service for most Canadians. For as much 8 as 25 per cent of households, over-the-air broadcasting 9 is their only form of television service. In addition, 10 a number of DTH subscribers are also using over-the-air 11 signals to complement their satellite service with 12 local programming. 13 9164 Policy or regulations emanating from 14 this proceeding should confirm and not alter the 15 ability of Canadians to receive signals using this 16 technology. While the Commission did not raise this 17 issue in the Public Notice, we feel that the issue 18 needs to be addressed for two main reasons. 19 9165 First, Industry Canada is about to 20 embark on a process of selling off publicly-owned 21 spectrum through an auction process. While their 22 interests are currently focused on telecommunications, 23 with the pending move to digital broadcasting, spectrum 24 currently used for over-the-air analog broadcasting 25 could become an attractive resource for the merchants StenoTran 1968 1 of Industry Canada. 2 9166 Secondly, there is a cost incurred by 3 broadcasters to provide over-the-air signals. With 4 many citizens in markets receiving signals by cable or 5 other means, there may be growing reluctance by some 6 broadcasters to continue an over-the-air signal. We do 7 not believe that it is the policy of the Commission or 8 the Government of Canada to cut off basic television 9 service over-the-air for several million Canadians and 10 would like to see this reaffirmed by the Commission as 11 part of the decision from this proceeding. 12 9167 In section 22 of the Public Notice, 13 the Commission asked whether other elements should be 14 contributing to the development of Canadian programs. 15 In the past, the Commission has indicated that it would 16 be able to deal with matters relating to convergence 17 without specific amendments to the Broadcasting or 18 Telecommunications Acts. With the development of new 19 forms of electronic content, including Canadian 20 cultural content, the Commission may need to revisit 21 the definition of program. 22 9168 Part of the problem we are facing is 23 that there is a lack of a substantive and inclusive 24 national Canadian content policy framework which 25 addresses the development and availability of the StenoTran 1969 1 different forms of Canadian content, such as 2 traditional programming and new forms of electronic 3 content, in a coherent manner. Where the government 4 chooses not to make policy, the matter often falls to 5 the Commission and it may in this case. 6 9169 Increasingly, programming and 7 distribution undertakings, and telecommunication 8 providers are providing services and content which 9 either through the means of delivery or in the form of 10 content, straddle both Acts. As well, exempt and 11 non-programming services, commercials ISPs, 12 tele-communications providers and others are developing 13 and distributing new forms of content, often integrated 14 or jointly marketed with conventional forms of content, 15 such as broadcast programming. 16 9170 This content is also being packaged 17 and marketed in what the industry calls "channels" or 18 "programming." With the blurring of these lines, not 19 only does the concept of program need to be revisited 20 under a broader policy umbrella of 'content,' but these 21 commercial providers should be contributing to the 22 development and availability of new forms of Canadian 23 content. 24 9171 As a start, FNACQ et al submit that, 25 in a comparable methodology to that imposed on StenoTran 1970 1 Broadcasting Distribution Undertakings and in 2 consideration that broadcast licensees are already 3 required to make contributions to the system, that 4 telecommunications carriers and commercial ISPs should 5 be contributing up to 5 per cent of gross annual 6 revenues to facilitate access and to support new forms 7 of content and programming. 8 9172 In priority, these funds should be 9 used, first, for facilitating affordable technical 10 access to the information highway as this relates to 11 the governments Connecting Canada policy agenda; 12 secondly, the development of non-profit Canadian 13 cultural, historical, citizenship and related 14 information resources in new electronic formats and, 15 thirdly, to augment the multimedia fund for the 16 development of other Canadian cultural content. 17 9173 In section 41 of the Public Notice, 18 the Commission raised the issue of concentration of 19 ownership. FNACQ et al submit that it is important for 20 the Commission to have a policy of limiting a person to 21 ownership of no more than one over-the-air television 22 station in a market. Concentration of ownership in 23 this, and other areas of the industry, risks eroding 24 the diversity of expression and information, as well as 25 undermining the notion of excellent in programming StenoTran 1971 1 being realized through competition. 2 9174 Beyond the issue of concentration of 3 ownership at the local level, this should also be a 4 major policy concern to the Commission at the regional 5 and national levels. 6 9175 While FNACQ et al appreciate the 7 industry's arguments of the need to vertically and 8 horizontally integrate in order to be competitively and 9 economically viable, rules and limits need to be 10 applied, even if on a case-by-case basis, to ensure 11 that our broader public interest, industrial, cultural 12 and social policy objectives are achieved. Again, 13 central to this concern are the issues of competition 14 and diversity of expression. 15 9176 It is also important that the 16 Commission establish clear rules about levels of 17 concentration of ownership of across production, 18 broadcasting and distribution sectors, given the 19 increasing liberalizing trade policies of Canada. 20 Without specific policies and rules for the Canadian 21 marketplace, if substantive foreign ownership is 22 permitted at some point in the future, the industry and 23 corporate structures and practices of other 24 jurisdictions which may not complement our system, may 25 come to be imposed without out ability to pursue any StenoTran 1972 1 recourse. 2 9177 With respect to local programming, 3 local stations and large multi-station groups, FNACQ et 4 al submit that it is necessary to continue the 5 provision of high quality local services by requiring 6 local stations to broadcast minimum quantities of local 7 news and information. 8 9178 An important issue for consumers is 9 also the move to digital broadcasting. We believe that 10 there should not be a quick move to digital-only 11 broadcasting. Proposals and recommendations about 12 digital broadcasting to date, have been poorly 13 researched and poorly thought out., with much of the 14 financial projections approximating "casino 15 economics" -- a roll of the dice and guesswork using 16 consumers' money in the final analysis. 17 9179 In the near term, digital will be an 18 extremely expensive option. A quick switch would cut 19 off television service for millions of Canadians who 20 could not afford the equipment. Again, we do not take 21 this to be the policy of the Canadian government or the 22 CRTC. 23 9180 FNACQ et al recommend that rather 24 than establishing a specific date for the cessation of 25 analog signalling, dual signalling of analog and StenoTran 1973 1 digital be provided until a threshold of at least 90 2 per cent of consumers have adopted digital equipment, 3 whether using a digital television or a set-top box 4 capable of converting this signal to analog. At such 5 time, the Commissioner should hold a public review of 6 whether a complete switch to digital should be made. 7 9181 As final comments, we would like to 8 address a proposal made last week by the Canadian 9 Association of Broadcasters about measuring the success 10 of Canadian programming using a ratings system or 11 levels of viewership. It would appear that their 12 intentions for the health of Canadian content and 13 programming are good, but we find the proposal of a 14 viewership or ratings criteria coupled with an 15 apparently voluntaristic approach for contributions in 16 obtaining Canadian content to be inappropriate and not 17 sound. 18 9182 The development of healthy Canadian 19 production and broadcasting sectors has been based on 20 obligations, performance requirements and subsidies of 21 different forms. These tools are not unique to the 22 sector in our society, or even to Canada. These are 23 common tools of governance which have been, and will 24 continue to be necessary to achieve a range and balance 25 of national economic, industrial, cultural and social StenoTran 1974 1 goals. 2 9183 It would appear in reading the 3 submission that the CAB is proposing that broadcasters 4 keep the money, the subsidies, but not the obligations 5 and required performance activities. Instead, we are 6 to go on faith that they will deliver, but we will 7 assess success based on a ratings system of viewership. 8 9184 We feel that obligations, performance 9 requirements and subsidies will continue to be an 10 important and necessary part of our system, given 11 domestic realities and in terms of trends in 12 international trade agreements. If the current 13 framework is considered a regulatory minimum by the 14 broadcasters, if they are so committed to the 15 development of the system, there is no reason that they 16 cannot come forward under the existing regime with 17 goals and implementation plans to increase quality and 18 viewership. Nothing needs to be changed to do this, 19 and guarantees will continue in the system through 20 regulation that has proven to be a great success. 21 9185 A ratings approach is an economics 22 tool used to measure consumption, but it is not 23 appropriate for Canadian content in this or other 24 areas. There are certainly economic costs to the 25 various initiatives which support Canadian content. StenoTran 1975 1 But the value and importance of our cultural products 2 and artifacts are measured using social, cultural and 3 political criteria as much, or at times more so than 4 economic or ratings criteria. 5 9186 If we measured the success of the 6 development of Canadian literature based on readership 7 or viewership, then instead of the work of Davies, 8 Laurence, Tremblay and others, our libraries would 9 stock comic books, because more people have probably 10 read them. It took 30 years to develop Canadian texts 11 in the areas of geography, history, the social sciences 12 and politics, so we would know something about our 13 country in addition to the Spanish Armada, the U.S. 14 Civil War and the capitals of U.S. states. A majority 15 of Canadians may not read these, but their value is 16 measured by other, considered more important criteria. 17 9187 We also feel that a viewership or 18 ratings model would contravene the Broadcasting Act. 19 For example, would subsection 3(d) need to be rewritten 20 to state that the Canadian broadcasting system should 21 encourage the development of Canadian expression by 22 providing a wide range of programming that reflects 23 Canadian attitudes, opinions, ideas and values and 24 artistic creativity, where the broadcaster wants or 25 levels of viewership warrant? Or would subsection StenoTran 1976 1 3(i), the programming provided by the Canadian 2 broadcasting system should be varied and comprehensive, 3 providing a balance of information, enlightenment and 4 entertainment for men, women and children of all ages, 5 interests and tastes where broadcasters want or levels 6 of viewership warrant? 7 0955 8 9188 There are also international trade 9 dimensions to this issue. In recent trade 10 negotiations, such as the MAI, Canada's negotiators 11 have been underachieving with respect to exemptions and 12 reservations in the areas of broadcasting and 13 telecommunications. 14 9189 For example, there were no 15 substantive Canadian reservations put forward for 16 culture. For telecommunications, the 10-year old NAFTA 17 reservations were offered up. In telecommunications, 18 two main changes have occurred since NAFTA: the 19 Internet and multimedia. 20 9190 We have yet to establish a broad 21 Canadian cultural and content policy framework in the 22 area of telecommunications in the context of 23 maintaining national integrity in this area in relation 24 to freer trade. 25 9191 In broadcasting, if we weaken or StenoTran 1977 1 remove some or all of our existing obligations, 2 performance requirements or subsidies, even to just 3 address domestic considerations as part of this 4 proceeding, then they are gone forever under trade 5 agreements. We may not have them, or the ability to 6 redesign them in future as needed, with the changing 7 realities of our trade relations. 8 9192 We do not need to help the Jack 9 Valenti's of the world in this process. 10 9193 That concludes the presentation of 11 FNACQ et al. 12 9194 THE CHAIRPERSON: Thank you, Mr. 13 Reddick. 14 9195 I will direct my questions to both of 15 you, and feel free to respond in either language, as 16 you see fit. 17 9196 You have been a little bit more 18 specific about your concerns this morning -- as you 19 were in your written presentation -- but they remain: 20 9197 (1) a fear that those consumers who 21 would not have programming provided to them unless they 22 subscribe to a paid distribution method of reception; 23 9198 (2) the concern that local 24 programming, which the consumer is interested in, in 25 your view, should be diminished; StenoTran 1978 1 9199 (3) that any emphasis on certain 2 under-represented categories may be at the expense of 3 truly local programming would be another concern of 4 yours; and also concentration of ownership. 5 9200 (4) a fourth concern I see is that as 6 various methods of creating content are used, a greater 7 number of industrial participants, or industry 8 participants, be made to provide funds for the 9 production of Canadian programming. 10 9201 Would that be fair? 11 9202 MR. REDDICK: Yes. 12 9203 THE CHAIRPERSON: If we start with 13 your concern that over-the-air broadcasting, never mind 14 its quality but that its actual availability be 15 maintained, are you concerned that broadcasters would 16 shut off their transmitter and feed their programming 17 to a distribution system; that is, wire or possibly 18 satellite? 19 9204 MR. REDDICK: Yes. Eight years ago, 20 when I was a policy advisor to the federal government, 21 the idea of auctioning of spectrum, while it was 22 abhorrent to everybody in government, now it has 23 happened. So anything is possible. 24 9205 When I look at that issue, for many 25 broadcasters it is very important to have the off-air StenoTran 1979 1 signal AC as an important part of its service. For 2 others, particulary in large urban centres where the 3 majority of the citizens receive signalling through 4 cable, they may look at that and say: "Well, it costs 5 us a lot to run a transmitter service. Maybe we don't 6 need to do this. Maybe for that 5 percent in this 7 city, we don't need to do that." 8 9206 I think the precedent would be wrong. 9 It is basic service in broadcasting, in our view. 10 9207 Cable is not a basic service, but 11 of-air is basic. 12 9208 THE CHAIRPERSON: Considering that 25 13 percent of the population is not subscribing to cable, 14 and suppose that some of the new methods of delivery, 15 such as DTH, do succeed in diminishing the number of 16 subscribers who rely on cable -- DTH is not going to 17 offer them a local programming station, at the moment 18 anyway -- I have difficulty with your fear. 19 9209 And if you are saying that the 20 auctioning of spectrum is what would lead to that, the 21 government would be shooting itself in the foot if it 22 auctions these frequencies at a price that the 23 broadcaster is going to find so outrageous as to shut 24 down its transmitter. 25 9210 The policy would not work very well, StenoTran 1980 1 would it, if the aim is to make money with the sale of 2 frequencies? 3 9211 I find it difficult to see that as a 4 big concern. 5 9212 MR. REDDICK: We have tried that 6 argument ourselves sometimes. 7 9213 One other point, stepping back a bit. 8 9214 In rural areas, I think roughly half 9 of the population has cable, and the rest rely on 10 off-air signalling. While DTH is an option for some, 11 it is still a very expensive option in terms of the 12 equipment and the monthly service; and also you do not 13 get the local programming. 14 9215 That is very important for rural 15 Canadians. 16 9216 Mme VALLÉE: Je pense aussi qu'il ne 17 faut pas oublier que dans plusieurs villes 18 canadiennes -- je pense entre autres à Québec et à 19 certaines parties de Montréal -- les gens sont abonnés 20 au câble parce qu'ils n'ont pas d'autre choix, parce 21 que les signaux par air n'arrivent pas à transmettre... 22 je ne dirais même pas de la qualité, mais juste de la 23 neige. Alors il faut quand même ne pas oublier cet 24 aspect-là de l'équation, que des gens sont pratiquement 25 abonnés de force au câble, parce qu'ils n'ont pas de StenoTran 1981 1 réception. 2 9217 Pour nous, la question de l'accès 3 dans les zones rurales est une question fondamentale, 4 mais aussi je pense que les statistiques qu'on a sont 5 peut-être un peu biaisées dû au fait que déjà la 6 qualité de transmission a baissé, et c'est pour ça 7 qu'on est quand même extrêmement préoccupé par le fait 8 qu'il faut que ça demeure du service de base, la 9 transmission de la programmation télévisuelle, par la 10 voie des airs. 11 9218 LA PRÉSIDENTE: Vous voulez dire par 12 ondes hertziennes. 13 9219 Mme VALLÉE: C'est ça. 14 9220 LA PRÉSIDENTE: Et c'est justement ce 15 qui serait votre inquiétude, c'est que pour une raison 16 ou une autre, incluant la vente du spectre, les 17 télédiffuseurs fermeraient leurs transmetteurs et 18 apporteraient leur signal... 19 9221 Mme VALLÉE: C'est ça, à la tête de 20 ligne du câblo ou par... 21 9222 LA PRÉSIDENTE: Ou d'une autre... 22 9223 Mme VALLÉE: C'est ça. Ou d'un autre 23 dispositif de... 24 9224 LA PRÉSIDENTE: Si c'est au 25 satellite, c'est très dispendieux pour une station StenoTran 1982 1 hertzienne. 2 9225 Mme VALLÉE: Effectivement. 3 9226 Il ne faut pas oublier qu'il y a des 4 coûts pour l'industrie, mais ces coûts-là ultimement 5 sont toujours répercutés dans le tarif que le 6 consommateur paye, et actuellement beaucoup des 7 installations ont été subventionnées, ou sont déjà 8 payées. Il faut les maintenir, il faut probablement 9 les moderniser, mais c'est probablement moins cher 10 ultimement pour le consommateur, cette 11 modernisation-là, que de devoir payer pour soit la 12 diffusion directe par satellite ou même le câble, parce 13 que dans certains cas le câble n'est même pas offert. 14 9227 LA PRÉSIDENTE: Passons maintenant à 15 votre inquiétude au sujet du contenu qui est offert par 16 les stations hertziennes, assumant qu'on continue à les 17 recevoir et qu'il n'y a pas le problème que vous 18 soulevez au niveau technologique. 19 9228 Et votre présentation orale et votre 20 présentation écrite s'inquiètent que la programmation 21 locale disparaisse des stations hertziennes, et je vous 22 avoue que pendant nos réunions avec le public en juin 23 nous avons eu évidemment beaucoup de représentations à 24 cet effet. 25 9229 Est-ce que vous savez qu'en ce moment StenoTran 1983 1 les stations doivent présenter à leur antenne des 2 nouvelles? 3 9230 Mme VALLÉE: Oui, on est au courant 4 qu'elles doivent présenter des nouvelles locales, mais 5 c'est généralement leur définition de "locales" qui 6 prime, et dans certains cas, je vais prendre au Québec, 7 c'est extrêmement limité, ce qu'ils offrent comme 8 contenu local. Si c'est dix minutes sur une diffusion 9 d'une heure, ce n'est pas énorme, vous conviendrez avec 10 moi. 11 9231 MR. REDDICK: One thing I would like 12 to add is that one of our concerns about local content 13 is that as you move to larger station owner groups or 14 takeovers in the industry, the question is: How much 15 incentive is there to produce content or news at 16 national or regional levels as opposed to the local 17 level? 18 9232 One of our concerns is that as those 19 kinds of trends in the industry take place, it is 20 important to make sure that there is diversity of 21 programming and a substantive amount of local 22 production continuing. 23 9233 So independent stations where they 24 may be owned within the community is one thing; but 25 where they become part of a national chain, if you StenoTran 1984 1 will, then we have some concern as to what happens to 2 diversity of content. 3 9234 THE CHAIRPERSON: In your written 4 submission, at page 4, paragraph 8, you talk about the 5 need to have regulations and incentives which would 6 improve the availability of quality Canadian content in 7 peak viewing hours. 8 9235 And you say that you have no specific 9 recommendations about new regulations or incentives at 10 that time. 11 9236 I was going to ask you whether having 12 followed the hearing, if you did, and having heard 13 various presentations, or knowing about various 14 presentations, whether you have any more comments to 15 make. 16 9237 You did this morning refer to and 17 discount the CAB's use of viewership levels as an 18 incentive or regulatory mechanism. 19 9238 You seem to have understood that the 20 CAB is asking to be relieved of all the regulations it 21 is under now, which is not quite fair. I believe the 22 CAB's position was to keep the A and B choice -- which 23 refer to either spending requirements or exhibition 24 requirements -- albeit with some relaxation related to 25 promotion, advertising, credits for specific types of StenoTran 1985 1 programming, but then not asking for more, the way the 2 producers are asking for more; instead, putting this 3 viewership goal as a grid or incentive to ensure that 4 we improve the quality and viewership of Canadian 5 content. 6 9239 Do you have any other comment now 7 about what the Commission should do with regard to 8 certain types of programming in peak viewing hours? 9 9240 MR. REDDICK: A couple of comments. 10 9241 First, we have not had a chance to 11 get deeply involved in this proceeding because, without 12 intervenor cost awards, we cannot devote the time. 13 9242 We devote about 20 percent of our 14 resources to pro bono work each year -- 15 9243 THE CHAIRPERSON: Just as I was about 16 to say: "We are very pleased to see you participating 17 in broadcasting. I hope that you enjoy yourself and 18 that you come back." 19 9244 MR. REDDICK: So I will move on from 20 that point. 21 9245 THE CHAIRPERSON: But like the 22 broadcasters, you think that that would be too 23 expensive without some help. 24 9246 MR. REDDICK: Well, it is a lot of 25 work. On the telecom side, as you well know, we put in StenoTran 1986 1 a lot of work and effort and spent a lot of time and 2 resources on that side, because we know that we will 3 still be in business a week later. 4 9247 For this, we have not been able to 5 commit the same kinds of resources, because we are a 6 not-for-profit organization and it is difficult for us 7 to make contributions to the CRTC that way. We prefer 8 to give it to poverty groups and to seniors. 9 9248 So we cannot offer much more in the 10 way of ideas on that front. 11 9249 In terms of the CAB, we read through 12 their documentation, especially page 42 of their 13 written submission several times, and we found the idea 14 interesting but very poorly developed and not at all 15 clear. 16 9250 Some of the points in some of their 17 plans of how to establish goals and the approach that 18 would be used, we found not very clear, and some 19 implicit suggestions there that maybe there would be 20 less regulation or less performance requirements in 21 terms of their contributions and more voluntaristic 22 approach to how they use the funds or what types of 23 programs they may make. 24 9251 With respect to the lack of clarity 25 and the fuzziness of some of the points, we chose to StenoTran 1987 1 err on the side of caution and assume that they wanted 2 to be released from some of the regulatory requirements 3 as part of the voluntaristic approach. 4 9252 We have some concerns with that and 5 also with the notion of viewership or using a ratings 6 approach to measure success. 7 9253 THE CHAIRPERSON: Mr. Reddick, are 8 you -- 9 9254 Mme VALLÉE: Je m'excuse, madame... 10 9255 LA PRÉSIDENTE: Oui, allez-y. 11 9256 Mme VALLÉE: J'aimerais citer Mme Lise 12 Payette, qui, lors de la remise des prix Gémeaux 13 dimanche dernier, nous a dit que "tout réduire aux 14 seules cotes d'écoute nous entraîne plutôt vers le bas 15 que vers le haut", et à ce titre-là je pense que la 16 suggestion de CAB serait effectivement de regarder avec 17 extrêmement d'attention, parce que si c'est comme ça 18 qu'on juge la qualité d'un programme, je pense qu'on 19 risque de vraiment errer dans le sens d'aller vers le 20 bas, et ce serait extrêmement regrettable. 21 9257 LA PRÉSIDENTE: Ce serait vers les 22 bandes illustrées. 23 9258 Mme VALLÉE: Oui, effectivement. 24 9259 THE CHAIRPERSON: But, Mr. Reddick, 25 do I hear you say that with sufficient funds, you could StenoTran 1988 1 find a way of making this project work; that it is 2 poorly thought out, but the idea is not necessarily to 3 be rejected? 4 9260 MR. REDDICK: If the underlying 5 assumption is that there is a problem with the current 6 regulatory approach, in that broadcasters see the 7 existing regulations as minimal targets -- this is all 8 they have to do and they do no more -- then that is a 9 problem and they are not contributing enough to the 10 system. Perhaps this is a better carrot, if you will, 11 or a way of showing good faith and goodwill. 12 9261 My response is: I would like to see 13 some evidence of that with the existing system; see 14 them go well beyond the existing floor, if you will, of 15 regulation to prove the point rather than to take the 16 risk of going on a voluntaristic approach or a code 17 approach without that regulatory framework to ground 18 that. 19 9262 Let's see if it can happen under the 20 existing framework and see what kind of success we 21 have. 22 9263 I think the problem is good 23 intentions, but when they butt up against shareholder 24 interest, I am willing to bet that the good intentions 25 are likely to lose on some of those issues. StenoTran 1989 1 9264 One other suggestion that I heard 2 recently is that the Canadian Production Fund is 3 proposing new guidelines, I understand, where instead 4 of taking a first-come/first-served approach on 5 funding, they would adjudicate proposals based on the 6 Canadianness of the applications. 7 9265 I think when companies or 8 broadcasters come forward in future for licensing, that 9 may be another way of sort of thinking about how to 10 improve the content: Is it just indigenous production 11 for Canada, regardless of whether there is economic 12 potential? Or is there also an export potential here? 13 9266 Or is it just a visual widget, if you 14 will, for export? 15 9267 Perhaps there is a way of finetuning 16 what we think as Canadian content. 17 9268 I know we have a proceeding coming up 18 on that later. 19 9269 Beyond that, we did not have the time 20 to go into substantive details on these issues. 21 9270 THE CHAIRPERSON: When you talk about 22 progressive rather than regressive on the first page of 23 your presentation, you would say demand more, not less, 24 than they are now doing; but stop short of doing it at 25 the expense of the real local, local programming. StenoTran 1990 1 9271 MR. REDDICK: Exactly. We have to be 2 careful. There is a certain amount of hand-wringing 3 going on, saying: "We have 32 percent viewership of 4 English programming." And people think that is 5 terrible. 6 9072 I think it is really good when you 7 look at other countries; for example, the United 8 States, where they have very little options other than 9 American programming. We have that, plus we also have 10 our programming. 11 9273 If we look at other areas, like 12 Canadian books, what have you, that greatly exceeds 13 those levels. 14 9274 So we are doing quite well. But we 15 can do better. I think as we plan to do better, we 16 have to be very careful that we don't trade off one 17 part of the sector, whether it is local programming or 18 under-represented categories for entertainment. We 19 have to be very careful in the approaches that we take. 20 9275 This requires probably some thought 21 and balance between "are we just talking about an 22 economic commodity for export", or "how do we balance 23 that with Canadian indigenous productions". 24 9276 That is a tough job. I know it is 25 your job to do that. How you resolve that, I can't StenoTran 1991 1 help you too much on that today. 2 9277 I think that comes down to the core 3 of the issue. 4 9278 Mme VALLÉE: Je pense qu'il ne 5 faudrait pas que vous oubliez aussi qu'il y a comme 6 deux marchés au Canada, et que le niveau d'audiences au 7 Québec pour les productions de langue française est 8 extrêmement élevé, et qu'il faudrait faire attention à 9 ne pas détruire ce qui existe déjà en modifiant des 10 règles qui sont déjà quand même pas si exigeantes que 11 ça pour les producteurs et les distributeurs. 12 9279 LA PRÉSIDENTE: Oui, parce que vous 13 réalisez que les règles au Québec sont probablement 14 moins exigeantes que les règles au Canada anglais. 15 Donc il y a des facteurs assez complexes, qui dépassent 16 même la langue, dont on a discuté dans plusieurs 17 soumissions, qui nous ont donné ce système. Et je suis 18 d'accord avec vous qu'il y a plusieurs intervenants qui 19 veulent s'assurer que l'acquis soit gardé et qu'on ne 20 glisse pas vers moins de productions canadiennes. 21 9280 Mr. Reddick, you mentioned both this 22 morning and in your written submission this balance you 23 feel has to occur between the production of what you 24 could call indigenous programming and programming that 25 is exportable -- not to say that the one can't become StenoTran 1992 1 the other. 2 9281 MR. REDDICK: Right. 3 9282 THE CHAIRPERSON: But you don't 4 discount the value of having a mix to reinforce the 5 production industry to the benefit of the viewer. 6 9283 MR. REDDICK: No. I think it is 7 extremely important to have the mix, because you have 8 to have an overall healthy industry. Obviously, some 9 areas are not as profitable as other areas. We do have 10 an industrial policy to create jobs and develop the 11 industry, and the economic side of that is very 12 important. The ability to undertake those other 13 activities requires that kind of financial health. So 14 I think that is very important. 15 9284 You are right that it is a question 16 of balance, and how we find that balance is probably 17 the key. That will change, and we will probably have 18 to revisit that over time. 19 9285 I think the biggest challenge for the 20 Commission over the next little while is, if we are 21 taking a more flexible approach in terms of policy -- 22 9286 It is going to be a lot more work for 23 you to see what happens and who is proceeding with what 24 types of initiatives to achieve those kinds of 25 balances. StenoTran 1993 1 1015 2 9287 THE CHAIRPERSON: With regard to 3 concentration of ownership, you seem to be quite 4 concerned that at the local level that there not be two 5 stations owned by the same owner and that would be 6 regardless of how many stations there are. 7 9288 You do seem to acknowledge that 8 concentration may, or do you, provide stronger parties 9 that are more likely with a balanced regulatory system 10 to give the results that you want. 11 9289 MR. REDDICK: Yes. In a competitive 12 market, producers are winners and losers. The natural 13 outcome is that one or a few companies wind up 14 dominating the marketplace, you know, given the freedom 15 to compete over time. That's fine. 16 9290 The important thing is to ensure that 17 as we move in that direction that there is not 18 dominance or particular control or market power by a 19 few companies in the industry. Yes, it's very 20 important, especially given global growth in the 21 industry, that we do have a very healthy broadcasting 22 industry and it's important to have the resources to be 23 able to undertake, you know, the types of requirements 24 they are going to need to survive domestically and deal 25 with international competition. StenoTran 1994 1 9291 At the same time, it comes back to 2 that word balance. It would be ironic -- 3 9292 THE CHAIRPERSON: Which is what you 4 are leaving to us. 5 9293 MR. REDDICK: Well, it is, but I 6 would observe that it would be ironic if we are victims 7 of our own success. You know, 20 years ago we had an 8 industry that was dominated by a couple of broadcasters 9 and a few production companies. We may end up coming 10 full circle if we're not careful, having an industry 11 dominated by a few distributors and a few production 12 companies and a few major broadcasters and the rest are 13 following along on their coat-tails. 14 9294 The question is how many, how big and 15 to what degree. If that's okay, then how do you 16 regulate it, what kind of conditions or requirements do 17 you need, if any? I think that's an ongoing review. I 18 don't think it's a hard and fast framework or answer 19 you can impose and say this will stand forever. I 20 think you have to look at how the industry changes over 21 time. I think it is an important issue. 22 9295 THE CHAIRPERSON: As you know, and 23 you alluded to it, we are holding a process on new 24 media, so I expect you will be there. Some of your 25 suggestions today address that area, in particular, by StenoTran 1995 1 suggesting an additional levy on additional parties, 2 including carriers. 3 9296 Are you looking at carriers that get 4 involved in content only or Internet providers who do 5 nothing but to provide access to the Internet? 6 9297 MR. REDDICK: At this stage we are 7 recommending that telecommunication carriers and the 8 ISP commercial providers as the only initial first 9 step. 10 9298 THE CHAIRPERSON: No, but this would 11 be regardless of whether they are providing content. 12 They are only providing carriage. 13 9299 MR. REDDICK: Right. 14 9300 THE CHAIRPERSON: I have a bit of 15 difficulty with where you would find the Commission's 16 ability without any legislative amendment to require 17 telecom carriers who are not involved in content to 18 provide funds for the purpose of providing content. 19 9301 MR. REDDICK: Well, it's something 20 that we thought about. We have addressed this issue at 21 previous proceedings. A couple of observations. One, 22 you may have to make an amendment at some point. This 23 goes back to the notion of trying to bridge the two 24 Acts and are they flexible enough to deal with this 25 issue. StenoTran 1996 1 9302 It also goes to the question of 2 there's a policy vacuum out there in our minds in 3 dealing with content and the various forms of content, 4 whether it's broadcasting on television, whether it's 5 multimedia, Internet, CD Rom, what have you. There 6 needs to be some more coherence and concordance between 7 content policies. 8 9303 Specifically, with 9 telecommunications, you know, we have moved well 10 beyond. We have evolved beyond basic telephone service 11 in terms of communications and telecommunications. 12 There are social obligations within the 13 Telecommunications Act under section 7. They are not 14 explicitly defined, but presumably with the amendment 15 earlier this year which refers to basic 16 telecommunications services in the plural as an 17 evolving concept, one would presume that if we were 18 moving beyond basic telephone and that we can receive 19 broadcasting and other forms of multimedia content 20 through the telecommunications system that there should 21 be some obligation there in terms of making that 22 accessible and also helping -- do they want summaries 23 or to see that new form of content which is not 24 programming in the traditional sense. 25 9304 THE CHAIRPERSON: You will be a very StenoTran 1997 1 popular man with some parties at this hearing if you 2 are suggesting that 5 per cent of gross annual revenues 3 of all telephone carriers annually be funnelled into a 4 fund for the production of content. 5 9305 MR. REDDICK: And access. 6 9306 MS VALLÉE: Madame Wylie, j'aimerais 7 que ce soit bien clair. Cette proposition-là est reliée 8 à l'ensemble de la problématique de l'accès, et pas 9 seulement à l'accès à la programmation télévisuelle. 10 9307 Si vous regardez notre soumission à 11 la page 8 et 9, il est très clair que pour nous c'est 12 l'accès aux info-routes, ce qui comprend le téléphone, 13 le multimédia, la télévision, la radio, et toutes les 14 formes de communication. Soyons bien clairs. 15 9308 LA PRÉSIDENTE: Vous voulez dire des 16 subventions... il y aurait une partie de ce fonds qui 17 irait à la production de la programmation, et une 18 partie qui irait à subventionner l'accès. 19 9309 Mme VALLÉE: Effectivement, et je 20 pense que cette proposition-là, pour nous c'est à la 21 base la même que celle que vous nous avez déjà entendu 22 faire dans certaines audiences de télécommunication. 23 Celle qu'on a mis de l'avant dans l'audience sur le 24 service téléphonique dans les zones de desserte à coûts 25 élevés, et pour nous c'est intimement relié. Je pense StenoTran 1998 1 que nous... 2 9310 LA PRÉSIDENTE: L'accès au contenu 3 plutôt que la production de contenu, ou les deux? 4 9311 Mme VALLÉE: Les deux. Mais c'est 5 notre troisième objectif dans notre proposition. C'est 6 d'abord l'accès au contenu, et ensuite l'aide au 7 développement de contenu local, régional, national. Et 8 je pense qu'il faut la voir dans ce sens-là. 9 9312 Nous avons déjà fait le saut dans le 10 monde de la convergence, et notre proposition s'inscrit 11 dans ce sens-là. 12 9313 MR. REDDICK: I would just like to 13 add that 5 per cent is a level that broadcast 14 distribution undertakings are required to contribute. 15 Given that their industry is about one tenth the size 16 of the telecommunications industry, we thought it would 17 be a fair and reasonable place to start. 18 9314 Again, I would just like to reaffirm 19 what Marie said about the disbursements of the funds. 20 One idea is to put it into telecommunications access. 21 When we look at programs such as the governments 22 connecting Canada program, community access, cap sites, 23 what have you, as the Commission has heard in this past 24 summer on the high cost of hearing proceeding, there's 25 a major access problem in terms of costs of multimedia StenoTran 1999 1 or Internet service, if you will, in rural areas. Part 2 of those funds could be used as part of that universal 3 fund or connectivity fund or whatever you want to call 4 it under telecommunications. 5 9315 Explicitly, we did say that the other 6 fund -- the rest of the money should be channelled to 7 the multimedia fund, but also for non-profit cultural 8 groups, historical groups and others to develop 9 content. 10 9316 The interesting thing is, unlike 11 television programming where you require studios and a 12 mass of employees and expensive equipment and what have 13 you to produce content, with the Internet and 14 multimedia you require creativity, a computer, a 15 scanner and some local resources or regional resources. 16 9317 A lot of cultural groups and heritage 17 groups have those resources. What they lack is the 18 means and the assistance and the lack of some sort of a 19 national policy to develop that. 20 9318 There's a real opportunity for these 21 groups and organizations across the country to develop 22 this new form of content, but there's a lack of the 23 different programs or procedures in place to do that 24 right now. That would be the other fund. 25 9319 THE CHAIRPERSON: So in both cases, StenoTran 2000 1 both access and as an incentive to the production of 2 content, you would have some criteria for access to it 3 based on inability to either pay or participate without 4 funding. 5 9320 MR. REDDICK: Yes. Ideally, we would 6 see this as separate funds, separate from the 7 broadcasters themselves who don't have to get involved 8 in the licensing issue, how do you license a fund or 9 how do you license a community network. We don't need 10 to get into that if the funds are accrued for those 11 purposes like any and all the other funds. People can 12 apply for that support. 13 9321 THE CHAIRPERSON: But if your aim is 14 to produce local programming, it's the broadcaster 15 usually who produces the local programming. 16 9322 MR. REDDICK: Yes. We are talking 17 about new forms of content though, using this fund. 18 9323 THE CHAIRPERSON: That are not 19 over-the-air available to all the Canadians and all the 20 consumers that you are representing. 21 9324 MR. REDDICK: Right. Electronic 22 content, multimedia. 23 9325 THE CHAIRPERSON: Yes. It is 13 per 24 cent of homes now have the equipment necessary to have 25 access to the new forms of content on the -- StenoTran 2001 1 9326 MR. REDDICK: It ranges between -- it 2 depends on whose numbers you look at -- 15 and 25 per 3 cent. At the moment, it's still quite low. It is 4 growing, but it's the type of thing where I think over 5 the next several years we will see increasing options 6 of how people will have access, whether it's through 7 television or other modes, but I think it's something 8 that we need to start thinking about now in terms of 9 development. 10 9327 THE CHAIRPERSON: Yes. It's a little 11 bit at odds with your aim to ensure that over-the-air 12 broadcasters get all the help they can and the 13 producers who produce programming for it so that the 14 highest proportion of the population get a diversity of 15 quality Canadian programming because generally 16 speaking, even with subsidies, I would imagine that 17 these new forms of access, and 25 to 30 per cent of 18 Internet access at home seems high to me, but in any 19 event, we see various numbers. 20 9328 It still remains that it's not the 21 consumer that you are aiming for whose life would be 22 enriched, that is the consumer who is relying only on 23 the over-the-air broadcaster to offer entertainment, 24 information, et cetera. 25 9329 MR. REDDICK: I agree with your StenoTran 2002 1 point. The problem is that there's no real choice for 2 consumers on this. We are moving to digital 3 television. A lot of the information, products and 4 service produced by governments and others are only 5 being made available on the Internet. 6 9330 It's not a question -- you know, some 7 of our clients don't want this, don't need this, 8 probably won't want to use this, but the problem is 9 they will have less and less choice over the next 10 several years so we are looking ahead in a transition 11 and saying if they are not going to have choice about 12 whether they have to access some of these content 13 services, whether it's government services or 14 commercial services, down the road, if they are not 15 going to have choice about whether they have to have 16 digital television or a set-top box over the next 17 several years, then at least what we should do is put 18 in place different types of funds or means of support 19 for both access, to facilitate access at the community 20 level and also different forms of support for content 21 which is relevant to their needs, which gives them a 22 reason beyond there down the road. 23 9331 You're right. Today it's not that 24 big an issue, but over the next several years it will 25 become an issue. We have to be thinking ahead for StenoTran 2003 1 that. 2 9332 Mme VALLÉE: C'est ça, et je pense que 3 notre proposition s'inscrit très bien dans la volonté 4 réitérée à maintes reprises par le gouvernement du 5 Canada, et particulièrement par le ministre de 6 l'industrie, qu'il y ait des points d'accès 7 communautaires, qu'il y ait de la production 8 communautaire qui pourront, oui, être diffusés par le 9 canal, l'Internet, et donc par des moyens 10 technologiques plus avancés, mais qui pourrait 11 également être reprise par les télédiffuseurs 12 traditionnels et diffusée soit localement, soit 13 régionalement. 14 9333 Je pense qu'il faut aussi donner aux 15 communautés la chance d'être au même niveau que les 16 entreprises commerciales -- peut-être pas au même 17 niveau mais, en tout cas, pas un dinosaure par rapport 18 à une Ferrari, n'est-ce pas, quand le temps va venir où 19 on n'aura plus le choix, et que là ce soit seulement 20 les fournisseurs commerciaux qui aient les moyens de 21 développer des applications qui vont refléter, dans le 22 fond, la volonté et la diversité des communautés. 23 9334 LA PRÉSIDENTE: Mais vous vous 24 rappelez que nous parlons maintenant de radiodiffusion. 25 Nous ne parlons pas de capacité d'avoir accès à StenoTran 2004 1 E-Commerce, E-Mail. Nous parlons ici de broadcasting, 2 de programmation, de divertissement, d'information, 3 news, et caetera. 4 9335 Mme VALLÉE: On n'est pas des grands 5 promoteurs du commerce électronique. On répond au... 6 9336 LA PRÉSIDENTE: Non, mais la 7 nécessité que les gens soient au même diapason est plus 8 sérieuse dans... in the area where one has to have 9 certain access to be able to participate in the world 10 the way other people are participating. 11 9337 It would seem to me if we provide in 12 the widest available technology means possible the best 13 programming possible that is diverse and of quality, in 14 the sense of broadcasting would be the aim. 15 9338 It appears to be your aim in ensuring 16 that those transmitters are not turned down. 17 9339 MR. REDDICK: Yes. 18 9340 THE CHAIRPERSON: If we put too much 19 money into providing video to a very small portion of 20 the population, it seems contradictory to the main aim 21 of your presentation. 22 9341 I want to ask you a last question. 23 On page 13, paragraph 22, of your written submission, 24 you speak of the significant benefits test and that it 25 should be continued. In other words, that when there StenoTran 2005 1 are transfers or concentration of ownership, the 2 Commission continue to demand that something be put 3 back in the system for the benefit of viewers. 4 9342 You say that there should continue to 5 be a comprehensive package of benefits as part of 6 licensing and a definition and imposition of these 7 should be done in an open, transparent processes. Are 8 you suggesting that that is not the case at the moment 9 and there needs to be a change or review in the manner 10 that the Commission imposes significant benefits? 11 9343 MR. REDDICK: No. We just want to 12 make sure it continues on in future. 13 9344 THE CHAIRPERSON: In the same manner. 14 9345 MR. REDDICK: In the same manner. 15 9346 THE CHAIRPERSON: You are aware that 16 we have public notices as to what are benefits that are 17 acceptable and what are not. Often, especially in 18 larger transactions, they are discussed very openly -- 19 9347 MR. REDDICK: That's important. 20 9348 THE CHAIRPERSON: -- and are in the 21 application and people can criticize or comment. 22 9349 MR. REDDICK: Especially for viewers 23 in different communities, you know when there are 24 changes in ownerships and what have you. It's very 25 important that they know what's going on and have an StenoTran 2006 1 opportunity to input into what's going on. 2 9350 One of our concerns in that as we 3 move to greater ownership of more and more station by 4 large owner groups that if the benefits are shifted 5 away from the community and promises are made to 6 produce other than at a regional or national level, we 7 want to make sure that people in the communities aren't 8 losing out on that. 9 9351 THE CHAIRPERSON: As you know, in 10 radio recently the Commission changed it's policy to a 11 case by case approach -- well, it's case by case in the 12 sense that it's related to the monetary level of the 13 transaction and a percentage was struck. 14 9352 Do you find that a more acceptable 15 method than an ad hoc method where the percentages may 16 indeed vary rather than simply applying a percentage 17 and then dictating where it goes. 18 9353 MR. REDDICK: Yes. I think you have 19 to be flexible. The reality is we have to take things 20 on a case by case basis these days because every 21 situation will be a bit different. I don't think you 22 can have a hard and fast rule. 23 9354 You may find you have to, I don't 24 know, but I think if the system is going to work and 25 given the different realities of different markets and StenoTran 2007 1 the different companies involved, you may need to take 2 a more flexible approach on that. 3 9355 THE CHAIRPERSON: Those are my 4 questions. My colleagues may have some, especially 5 Commissioner McKendry indicated he does. 6 9356 I hope you enjoyed yourselves 7 sufficiently to come back on a rainy day and without 8 funds. 9 9357 MR. REDDICK: We will get walking 10 back, but we will be okay. 11 9358 THE CHAIRPERSON: Thank you. 12 9359 Commissioner McKendry. 13 9360 COMMISSIONER McKENDRY: I just have 14 one question I wanted to ask you about the 5 per cent 15 contribution by telecommunications carriers and 16 commercial ISPs. 17 9361 Cable rates are 5 per cent higher 18 than they would be otherwise because of the 19 contribution by the cable companies. It's not really 20 the cable companies that make the contribution to the 21 fund. It's you and me and the cable companies' 22 customers. 23 9362 Do you think that consumers would 24 cheerfully accept a 5 per cent increase in their phone 25 bills and in their ISP -- StenoTran 2008 1 9363 MR. REDDICK: How much do you get 2 back each month from your phone company when you pay 3 your bill? 4 9364 COMMISSIONER McKENDRY: Just to 5 finish my question. Do you think that consumers would 6 cheerfully accept a 5 per cent increase in their phone 7 bills and in their ISP access fees for the purposes 8 that you have set out here? 9 9365 MR. REDDICK: Again, I would answer 10 the question and I will continue with how much do you 11 get back each month from your ISP and your phone 12 company out of your phone bill? What we are proposing 13 may increase your fees by 5 per cent. The difference 14 is that it's consumer money going back for consumers 15 and for public interest us. 16 9366 I think given the trade-off, it's 17 probably well worth it. Marie? 18 9367 Mme VALLÉE: Je pense aussi que 19 peut-être que ça ne se traduira pas nécessairement par 20 une hausse de 5 pour cent de la facture du téléphone de 21 base, compte tenu qu'actuellement on le sait... je ne 22 voudrais pas tomber dans une audience de telecom, mais 23 que les compagnies de telecom ont de la misère à 24 rencontrer les obligations qui leur sont imposées par 25 le plafonnement des prix. Alors peut-être que ça va se StenoTran 2009 1 traduire par une hausse de 5 pour cent; peut-être pas 2 non plus. Ce sont des choses qui devront être 3 débattues quand on discutera des fonds à mettre en 4 place pour aider à l'accès dans les régions rurales 5 éloignées, pour les personnes économiquement 6 défavorisées, et peut-être aussi pour aider à 7 contribuer au développement de contenu canadien. 8 9368 Mais est-ce que ça va effectivement 9 donner directement une hausse de 5 pour cent? C'est ce 10 qu'on verra. Par ailleurs, je crois que Andy a soulevé 11 un point très important, à savoir que, oui, peut-être 12 que nos tarifs de câble sont légèrement plus élevés 13 qu'ils le seraient, mais je pense que ça nous donne 14 aussi un meilleur éventail de productions canadiennes, 15 de contribuer comme ça. 16 9369 C'est sûr qu'il va y avoir des gens 17 qui ne seront pas contents, mais je pense que c'est le 18 rôle du Conseil et du gouvernement canadien, 19 d'équilibrer, balancer, comme on dit en anglais, les 20 intérêts individuels avec l'intérêt public, l'intérêt 21 collectif, et si c'est le prix à payer, on le paiera. 22 9370 COMMISSIONER McKENDRY: Thank you. 23 9371 THE CHAIRPERSON: Counsel? 24 9372 MR. BLAIS: Just one question. 25 9373 I was noticing that your StenoTran 2010 1 recommendations dealt with the broadcasting sector 2 generally. I was wondering more specifically from a 3 consumer perspective whether the specificity of either 4 the English or the French sector should influence those 5 recommendations. 6 1030 7 9374 Do the consumer interests -- are they 8 in line with the notion that each sector is distinct? 9 9375 Mme VALLÉE: Je pense que vous ne 10 pourrez pas faire autrement que d'en tenir compte, 11 n'est-ce pas, mais je crois aussi qu'il y a des choses 12 qui s'appliquent à travers tout le pays au titre de 13 protéger le contenu canadien, qu'il soit francophone ou 14 anglophone. C'est évident qu'il y a des spécificités 15 dans la production et dans la distribution du contenu 16 francophone et qu'on veut préserver ce qu'on a réussi à 17 atteindre à travers les années, mais je pense qu'il ne 18 faut pas non plus lâcher trop de corde du côté de la 19 production et de la distribution au Canada anglais non 20 plus. 21 9376 Me BLAIS: Peut-être ma question 22 touchait plus la structure de l'industrie du côté 23 francophone. 24 9377 Je me demandais si, étant donné les 25 trois tests de ce marché, on ne devrait pas avoir des StenoTran 2011 1 règles qui sont un peu différentes du Canada anglais, 2 et je me demandais si du point de vue des consommateurs 3 ça vous créait des problèmes. 4 9378 Mme VALLÉE: Dans le sens de la 5 propriété, ou... 6 9379 Effectivement, je pense que le marché 7 étant extrêmement concentré et très petit, ce que nous 8 avons mentionné s'applique probablement encore avec 9 plus de précaution ou d'attention au Québec, compte 10 tenu de... effectivement, déjà il y a un très haut 11 niveau de concentration. Il faut faire encore très 12 attention à ce niveau-là. 13 9380 Ceci dit, je pense que le marché 14 canadien-anglais n'est pas si immense que ça. Le 15 Canada est un grand pays, mais le marché n'est pas plus 16 grand parce qu'il est géographiquement étendu, et je 17 pense que dans l'ouest, entre autres, tous les 18 mouvements qu'on a vus, entre autres, la compagnie Shaw 19 faire des acquisitions verticales, tout ça, il va 20 falloir de ce côté-là être aussi extrêmement prudent. 21 9381 MR. REDDICK: I would just like to 22 add at the outset of the proceeding, I think it was the 23 Chair stated that there are distinct differences 24 between the different markets and we respect and 25 understand there may be different applications in a StenoTran 2012 1 general level of some of the different ideals. So, 2 yes, we acknowledge that. 3 9382 Me BLAIS: Merci. Ce sont mes 4 questions. 5 9383 LA PRÉSIDENTE: Merci. Nous vous 6 remercions et, au revoir. 7 9384 Nous allons maintenant prendre une 8 pause de 15 minutes. We will be back at 10 to 11:00. 9 --- Short recess at / Courte suspension à 1035 10 --- Reprise à / Upon resuming at 1055 11 9385 LA PRÉSIDENTE: Bonjour, mesdames et 12 messieurs. Je m'excuse, il semble que je sois un peu 13 en retard. 14 9386 Madame la Secrétaire. 15 9387 Mme BÉNARD: Merci, Madame la 16 Présidente. 17 9388 La prochaine présentation sera celle 18 de Astral Communications inc. J'inviterais M. Bureau à 19 nous présenter ses collègues. 20 PRÉSENTATION / PRESENTATION 21 9389 M. BUREAU: Madame la Présidente, 22 Mesdames, Messieurs les Conseillers, je suis André 23 Bureau, président du conseil d'Astral Communications et 24 président et chef de la direction du Groupe de 25 radiodiffusion Astral. StenoTran 2013 1 9390 À mes côtés aujourd'hui, à ma droite, 2 Lisa de Wilde, présidente de TMN - The Movie Network, 3 MOVIEPIX et Viewer's Choice Canada; à sa droite, Sophie 4 Émond, conseiller juridique, Heenan Blaikie; à ma 5 gauche, Pierre Roy, président et chef de la direction 6 de Super Écran, Canal Famille et Canal D; derrière moi, 7 en commençant par ma gauche, René Bourdages, 8 vice-président et directeur général de Canal Indigo; 9 Len Cochrane, président et chef de l'exploitation de 10 Family Channel, qu'Astral détient à part égale avec 11 WIC; Alicia Ortiz, directrice à la planification 12 stratégique de TMN Networks; et John Riley, président 13 de Teletoon, dont Family Cannel est le principal 14 actionnaire. 15 9391 Comme vous le savez, Madame la 16 Présidente, le Groupe de radiodiffusion Astral exploite 17 quatre réseaux de télévision spécialisée, Canal D, 18 Canal Famille, Teletoon en français et Teletoon en 19 anglais; quatre réseaux de télévision payante, Super 20 Écran, TMN, MOVIEPIX et Family Channel; ainsi qu'un 21 réseau de télévision à la carte de langue française, 22 Canal Indigo, et un de langue anglaise, Viewer's 23 Choice. 24 9392 Par le biais de ces réseaux, nous 25 avons contribué plus de 325 millions de dollars au StenoTran 2014 1 développement de scénarios, au financement, à la 2 promotion et à la diffusion d'émissions canadiennes 3 depuis le lancement de nos premiers réseaux au début 4 des années quatre-vingt. Mais, encore plus important, 5 nos contributions financières ont porté vers les 6 catégories d'émissions canadiennes sous-représentées, 7 soit les longs métrages, les séries dramatiques, les 8 documentaires et les émissions pour enfants. De plus, 9 ces émissions voient fréquemment leur qualité reconnue 10 sur la scène nationale et internationale. Une liste 11 contenant le nombre impressionnant d'émissions ainsi 12 primées est jointe à notre présentation. 13 9393 Nos réseaux Super Écran, TMN, 14 MOVIEPIX, Viewer's Choice et Canal Indigo sont des 15 acteurs clés du secteur canadien de la télévision 16 payante et à la carte, qui représentent la plus grande 17 source de financement des longs métrages canadiens 18 provenant du secteur privé. De plus, nos réseaux 19 constituent la fenêtre la plus importante permettant 20 aux téléspectateurs canadiens de voir à ces enseignes 21 des films canadiens. Ainsi, par exemple, "Le Violon 22 Rouge", "No!", "Last Night" et "Hathi", qui ont connu 23 beaucoup de succès lors du récent Festival 24 international du film de Toronto et au Festival des 25 films du monde de Montréal, seront diffusés par nos StenoTran 2015 1 réseaux dans moins d'un an. 2 9394 À Canal Indigo, "Les Boys" détient le 3 record de tous les temps pour le plus de ventes en une 4 journée pour un film offert à la carte. De plus, Canal 5 Indigo a fait sa marque dans le soutien d'événements 6 dont le public québécois raffole avec, par exemple, les 7 galas du Festival Juste pour Rire et des concerts du 8 Festival d'été international de Québec. Viewer's 9 Choice, pour sa part, fournit une programmation unique 10 à un auditoire de niche; "The Sahara Cup Cricket" en 11 est un bon exemple. 12 9395 Bien que les émissions pour enfants 13 soient parmi les catégories les plus sous-représentées 14 à la télévision canadienne, Canal Famille, Family 15 Channel et Teletoon offrent un menu quotidien 16 d'émissions pour enfants et d'animation de qualité en 17 provenance du secteur indépendant. De plus, ils 18 apportent un soutien financier critique à ces émissions 19 et les enfants canadiens les écoutent fidèlement: Les 20 productions canadiennes "Franklin", "The Busy World of 21 Richard Scarry" et "Kleo The Misfit Unicorn" font 22 constamment partie de la liste des dix émissions les 23 plus populaires de Family Channel dans le bloc 24 préscolaire. 25 9396 Au premier anniversaire de Teletoon, StenoTran 2016 1 nous pouvons affirmer que les productions canadiennes, 2 telles "Fifi Brindacier" et l'émission préscolaire 3 "Caillou", ont grandement contribué au succès du 4 lancement du réseau. D'ailleurs, "Caillou" a remporté 5 un prix Gémeaux la fin de semaine dernière. Quant à 6 Canal Famille, nous sommes fiers d'être associés aux 7 cinq prix Gémeaux décernés aux productions suivantes 8 dimanche dernier, "Pin-Pon", "Radio-Enfer" et "Les 9 Zigotos". 10 9397 Canal D, quant à lui, fournit un 11 soutien financier important aux producteurs canadiens 12 de documentaires, une catégorie d'émissions fortement 13 sous-représentée à la télévision de langue française 14 avant l'arrivée de Canal D. Depuis son lancement en 15 1995 Canal D a diffusé des séries primées, tel "Des 16 Crimes et des Hommes", des documentaires d'auteur tel 17 "Aller simple pour Sirius" et "Anatomie de Tarzan". 18 9398 En plus de notre contribution au 19 Fonds Harold Greenberg, nous sommes heureux d'annoncer 20 aujourd'hui la création du Fonds de programmation 21 Astral. Ce nouveau fonds jouera un rôle dans le 22 financement, le développement et la production 23 d'émissions canadiennes en se concentrant tout d'abord 24 sur les documentaires. Le fonds injectera 10 millions 25 de dollars supplémentaires sur cinq ans dans la StenoTran 2017 1 production canadienne. Ceci contribuera à générer un 2 volume de production de documentaires de 50 millions de 3 dollars. 4 9399 MS de WILDE: The current regulatory 5 framework ensures that the contribution of the 6 specialty and pay television sector automatically 7 increases as revenues grow. In the last five years pay 8 and specialty services have increased their total 9 revenues by more than 60 per cent, while Canadian 10 programming expenses have increased by almost 90 per 11 cent. In fact, 80 per cent of all the new incremental 12 dollars that have been spent on programming by pay and 13 specialty services went to Canadian programming. 14 9400 In contrast, conventional 15 broadcasters have increased their revenues by more than 16 15 per cent over the last five years, but have only 17 increased their Canadian programming expenditures by 8 18 per cent. For conventional broadcasters, the 19 proportion of those new dollars spent on Canadian 20 programming represented only a third of all the new 21 programming dollars spent. We have included in the 22 package an appendix that explains this calculation. 23 The point of it, though, is to demonstrate that the 24 conditions of licence that are attached to pay and 25 specialty in fact drive increased contributions as long StenoTran 2018 1 as revenues are increasing. 2 9401 The contribution of pay and specialty 3 services can be even larger if we can eliminate a 4 number of the bottlenecks that currently limit our 5 access to viewers and hence hold back or hold down our 6 revenues. 7 9402 It is urgent that efforts be made to 8 eliminate the piracy, which has a very dramatic 9 negative impact on Canadian pay television and 10 pay-per-view revenues. Each year this signal piracy 11 translates into losses of millions of dollars to the 12 detriment of rightsholders as well as to the whole 13 Canadian system. Indeed, the elimination of piracy 14 would more than double the expenditures of pay TV and 15 pay-per-view, which currently spend $23 million each 16 year on Canadian movies. 17 9403 We believe that the best way to 18 eliminate piracy is to accelerate the transition from 19 analog to digital cable distribution. The more 20 sophisticated encryption technology that is associated 21 with digital will shut down the signal thieves. 22 9404 This is also why we have recommended 23 that the Commission establish and chair a working group 24 in which all the players with an interest in digital 25 cable distribution can work together to formulate a StenoTran 2019 1 viable business plan for the roll-out of digital cable. 2 9405 Secondly, for Canadian viewers to be 3 able to watch high quality Canadian programs, those 4 programming services which exhibit those programs have 5 to be made available to them. To this end, we suggest 6 several regulatory initiatives to eliminate some key 7 bottlenecks and to therefore increase our contribution 8 by increasing our revenues. 9 9406 First, we suggest that the Commission 10 should establish a floor wholesale rate for specialty 11 services since it is these revenues that underpin the 12 licence commitments for Canadian programming. 13 9407 Second, the regulatory framework 14 should favour the packaging of specialty services 15 rather than an à la carte approach. 16 9408 Finally, in a digital world, the 17 distribution of French-language services must be 18 expanded to markets where at least 10 per cent of the 19 population is French speaking. 20 9409 M. ROY: Certains radiodiffuseurs 21 conventionnels favorisent une intégration plus poussée 22 du système qui permettrait aux radiodiffuseurs 23 conventionnels d'augmenter leurs activités de 24 production et d'avoir davantage accès aux fonds publics 25 pour cette activité. StenoTran 2020 1 9410 Avec ce scénario, nous croyons qu'il 2 y a un risque réel que les petits et moyens producteurs 3 indépendants soient marginalisés. Pour les services de 4 télévision spécialisée et payante comme les nôtres, qui 5 ont choisi de dépendre des producteurs indépendants 6 pour l'approvisionnement de toute leur programmation 7 canadienne, cela serait dévastateur. 8 9411 Nos réseaux, qui globalement génèrent 9 moins de revenus que TVA, ne sont pas suffisants à eux 10 seuls pour assurer la viabilité du secteur indépendant. 11 En fait, le Canada ne compterait pas 48 réseaux de 12 télévision spécialisée et payante si chacun d'eux 13 dépendait uniquement de sa production maison. Le 14 soutien des réseaux conventionnels à la production 15 indépendante est donc également essentiel. 16 9412 Pour maintenir un secteur sain de la 17 production indépendante, nous suggérons donc d'exiger 18 de tous les radiodiffuseurs conventionnels qu'ils 19 consacrent un pourcentage de leurs dépenses de 20 programmation à des émissions produites par des 21 entreprises non affiliées. 22 9413 Si le Conseil en venait à recommander 23 que les radiodiffuseurs aient accès au Programme de 24 participation au capital du Fonds canadien de 25 télévision, cet accès devrait être limité aux StenoTran 2021 1 productions qui ne sont pas présentées à leur antenne 2 en première fenêtre. Cette approche serait consistante 3 avec les règles empêchant les producteurs qui 4 détiennent des réseaux spécialisés d'accéder aux fonds 5 pour leurs propres réseaux. 6 9414 Nous suggérons que l'allocation de 50 7 pour cent allouée aux productions destinées à la 8 Société Radio-Canada doit être revue. Cette allocation 9 est devenue disproportionnée par rapport au poids réel 10 de la Société Radio-Canada dans l'univers télévisuel 11 canadien. 12 9415 En ce qui a trait à la ventilation 13 des ressources par catégorie d'émissions, nous 14 soumettons qu'elle devrait mieux refléter les 15 préoccupations du Conseil concernant toutes les 16 catégories d'émissions sous-représentées. 17 9416 Nous recommandons également, afin de 18 générer des droits de licences supplémentaires pour les 19 producteurs, que la définition d'"émission originale en 20 première diffusion" soit élargie pour faciliter le 21 financement d'émissions canadiennes de catégories 22 sous-représentées, particulièrement des émissions pour 23 enfants et des documentaires. La définition proposée 24 dans notre mémoire permettrait à des diffuseurs de 25 langues anglaise et française, discrétionnaires et StenoTran 2022 1 spécialisés, de contribuer conjointement au financement 2 des émissions tout en étant toujours considérées comme 3 émissions originales en première diffusion sur chacune 4 des fenêtres. 5 9417 MR. COCHRANE: Now, I would like to 6 turn to the promotion of Canadian programming and 7 services. 8 9418 We agree that increasing the 9 resources dedicated to the promotion of Canadian 10 programming is a desired objective. We must emphasize, 11 however, that it is also vitally important to promote 12 Canadian programming services and not only Canadian 13 programs. In an increasingly competitive universe, the 14 promotion of Canadian services must also be a primary 15 objective. This is especially the case for truly 16 discretionary pay television services, which must sell 17 subscription to the service each and every month by 18 promoting the services through unscrambled venues, like 19 cross-channel avails. 20 9419 MR. RILEY: As our final point, we 21 wish to support the widely held view that the 22 contribution of authorized non-Canadian services should 23 be increased. We agree with the suggestion made by 24 SPTV to use all advertising avails on U.S. satellite 25 services to promote Canadian programming and Canadian StenoTran 2023 1 services. 2 9420 It must be stressed that this new 3 contribution by U.S. satellite services should in no 4 way lead to any relaxation of the current rules which 5 favour the licensing and distribution of Canadian 6 services, nor would we want to see an end to the 7 moratorium on additions to the List of authorized 8 foreign services. 9 9421 MR. BUREAU: This concludes our 10 remarks. A summary of our key points is attached to 11 our presentation, and we look forward to answering your 12 questions. 13 9422 Thank you very much. Merci beaucoup. 14 9423 LA PRÉSIDENTE: Merci. 15 9424 Commissioner Wilson. 16 9425 COMMISSIONER WILSON: Good morning, 17 Mr. Bureau, and good morning to all of your colleagues, 18 including Mr. Riley in the back row there. It is a 19 pleasure to have you with us. 20 9426 MR. RILEY: Good to see you. 21 9427 COMMISSIONER WILSON: If you don't 22 mind, I would like to take advantage of the fact that 23 you have some experience in this area by exploring your 24 submission in the context of a number of the proposals 25 that have been presented to us. Then I would like to StenoTran 2024 1 ask you a couple of more general questions and some 2 questions with respect to your oral submission; you 3 have added some detail in there to expand on some of 4 the points that you have made in your submission, and I 5 would just like to clarify a couple of issues. 6 9428 You make six specific recommendations 7 in your submission, one of which deals with access and 8 distribution. As you are probably aware, since you 9 filed your submission we have initiated a public 10 process at the Commission that will deal with these 11 issues, and as a result it would be imprudent of me to 12 engage in lengthy discussion with you on those issues, 13 but I want to assure you that the points that you made 14 with respect to unrealized contributions to Canadian 15 programming have been noted, and that certainly is the 16 area which touches directly on our exploration right 17 now. 18 9429 In your introduction, when you talk 19 about the success of the Canadian television system, 20 you say that this success is the result of five 21 critical regulatory policies and you describe these 22 policies as the fundamental building blocks essential 23 to the success of the Canadian broadcasting system and 24 to the fulfilment of the objectives outlined by the 25 Commission and set out in the Broadcasting Act, and you StenoTran 2025 1 go on to say that they should be kept in mind 2 throughout the current public process. 3 9430 It occurred to me when I read that 4 that maybe there is just a bit of a frustrated 5 regulator expressing himself in those words and I 6 wondered if maybe you missed the days when you had a 7 more direct impact on all of this, but I wonder if you 8 would mind articulating for us why you think these five 9 policies in particular are the most important ones for 10 the Canadian broadcasting system. 11 1110 12 9431 MR. BUREAU: Madam Wilson, I will 13 obviously not comment on your suggestion, but I will 14 say that these five key elements that we have mentioned 15 in our submission, we have developed them over the past 16 few years, not only for the purpose of this process 17 here but because we are involved in some other venues 18 with strategic positions for the Canadian government 19 vis-à-vis the rest of the world in terms of treaties, 20 in terms of international agreements and things of that 21 nature. 22 9432 On these occasions we had to rethink 23 how we should position our country, how the success 24 that we have had here could "benefit other countries" 25 if they were to try and establish something, some sort StenoTran 2026 1 of an infrastructure, some sort of a regulatory 2 framework that would work and would create the proper 3 environment for a strong, unique, distinctive Canadian 4 broadcasting system. 5 9433 So, we came up with these five 6 critical regulatory policies that we have put in our 7 submission here, the first one being the Canadian 8 ownership. As we all know, this notion is debated at 9 every level of government and in every instance where 10 there are some international discussions and we still 11 believe that it is the fundamental regulatory measure 12 that will ensure that we maintain a distinctive and 13 strong Canadian broadcasting system. 14 9434 The second one is the separate 15 Canadian territorial market for program rights and 16 obviously the minute we abandon that, the minute we 17 forget about that or we allow something to deteriorate 18 that situation, there is no possibility for Canadian 19 broadcasters to compete against, for example, the 20 Americans who would be in a position to acquire North 21 American rights while we cannot acquire North American 22 rights. So, we cannot afford to do that. So, we would 23 be in position where we would be deprived of access to 24 a lot of programming coming from outside Canada. 25 9435 The third one is the access and StenoTran 2027 1 distribution rules and -- 2 9436 COMMISSIONER WILSON: That's the one 3 that we are not really going to talk about. 4 9437 MR. BUREAU: That's the one that we 5 won't talk about. All right, we won't talk about it, 6 but they are very fundamental. 7 9438 COMMISSIONER WILSON: I'm sure you 8 will talk about it later. 9 9439 MR. BUREAU: We will have other 10 venues. 11 9440 The next one is the Canadian content 12 exhibition and spending requirements for all Canadian 13 broadcasters and what we have alluded to in our oral 14 presentation is that what you have seen happening on 15 the side of the specialty services by having an 16 approach to the contribution of those licensees to the 17 usage of some of their revenues to acquire or invest in 18 Canadian programming has been working very well and we 19 believe that this point here is a very, very important 20 one that needs to be stressed. 21 9441 The fifth one is the favourable tax 22 treatment for advertising on Canadian broadcasting 23 networks and we believe that these together would form 24 the five critical regulatory policies that need to be 25 maintained. Now, in addition to that, before I let my StenoTran 2028 1 other colleagues comment on that, if you wish, if you 2 allow us, there is a pretty fundamental overall 3 structure that is not part of any rule in the 4 regulatory framework that we have, but it has been 5 established over the years and I think that it is very 6 key that we maintain that. 7 9442 The Canadian system here has been 8 flourishing, has been a real success, because you have 9 the Canadian conventional broadcasters that form one 10 element of it, you have the Canadian independent 11 production industry and you have the specialty and pay 12 services. I insist on the Canadian independent 13 production industry because it is clear, as we have 14 also mentioned in our oral presentation, that if they 15 were not there, if they were not that strong as they 16 are at the present time -- which is the envy of the 17 rest of the world, except the United States, but for 18 the rest of the world -- if they were not there, we 19 would not have 48 specialty and pay services in Canada 20 here. We would have had to import more foreign 21 services because we could not afford separately these 22 48 services, could not afford to establish a production 23 infrastructure to provide the Canadian content that we 24 provide. 25 9443 So, these three are very key elements StenoTran 2029 1 of the system and if we allow any one of the three to 2 deteriorate or to be impacted negatively, it will have 3 an impact on the overall system. For example, if the 4 Canadian independent production industry were to 5 disappear or were to be seriously negatively impacted 6 by some rules -- 7 9444 COMMISSIONER WILSON: As it has in 8 the U.S., for example. 9 9445 MR. BUREAU: Exactly. The specialty 10 services would be in great need of some quality 11 Canadian production and where would they buy it because 12 they cannot by themselves justify the maintenance or 13 the existence of a Canadian production industry -- 14 9446 COMMISSIONER WILSON: I am going 15 to -- 16 9447 MR. BUREAU: -- and the three have to 17 work together. 18 9448 COMMISSIONER WILSON: I am going to 19 explore that in a little more detail with you as I go 20 through your recommendations, so we will have more of 21 an opportunity, but I would like to turn to the first 22 of the recommendations that you made, at least the 23 first one that we are going to talk about, and that's 24 the support for under-represented program categories. 25 9449 You noted at page 10 of your StenoTran 2030 1 submission that programs from the under-represented 2 categories are a prominent element of the schedules of 3 pay and specialty networks, but you also feel that all 4 licensed programming services should actively support 5 the creation and exhibition of programming in these 6 categories. 7 9450 One of the suggestions that we have 8 heard from the broadcasters is that the Commission 9 should stop placing such heavy emphasis on the 10 under-represented categories, thereby devaluing other 11 categories of programming such as news or local 12 reflection, and they also propose that we allow them 13 the flexibility to differentiate themselves and 14 contribute greater diversity to the system by allowing 15 them to concentrate their efforts on the specific 16 genres of Canadian programming that they feel they do 17 best. 18 9451 What is your reaction to that 19 proposal? I mean as a business person whose network 20 schedules are comprised to a very large degree of the 21 under-represented categories of programming, isn't it 22 in your interest to have that niche carved out for 23 yourself and not worry so much about all of the other 24 licensed programming undertakings? 25 1120 StenoTran 2031 1 9452 M. ROY: Non. Nous croyons que ces 2 catégories sous-représentées devraient être maintenues 3 et même nous pensons que pour le marché francophone, 4 par exemple, il y a encore un besoin accru de supporter 5 ces catégories sous-représentées par une meilleure 6 allocation des fonds qui leur sont consacrés. 7 L'équilibre dont André parlait entre les producteurs et 8 tout le système, les diffuseurs et les services 9 spécialisés, je pense que cet équilibre doit aussi 10 exister au niveau des catégories sous-représentées et 11 que ça ne doit pas être le seul fait des chaînes 12 spécialisées. 13 9453 À l'occasion nous faisons des accords 14 de co-financement avec des chaînes conventionnelles, 15 que ce soit dans notre propre marché ou dans le marché 16 anglophone. Donc elles aussi doivent contribuer à leur 17 façon au financement et à la diffusion de ces 18 catégories sous-représentées de programmation. 19 9454 COMMISSIONER WILSON: So when you say 20 that you need increased support, especially in the 21 French-language market, for the under-represented 22 programming categories -- in fact, I think in your 23 submission you outline that in the English-language 24 market it is drama, variety, music and dance, 25 children's, documentaries, but in the French-language StenoTran 2032 1 market drama is much more prevalent and much more 2 successful in terms of viewership. 3 9455 M. ROY: Tout à fait. Nous avons une 4 longue tradition de succès au niveau des séries 5 dramatiques au Canada français, mais le financement 6 d'émissions pour enfants ou de documentaires de qualité 7 est vraiment problématique parce que nous avons un 8 petit marché, des ressources limitées, et dans ce 9 sens-là nous proposons qu'il y ait une meilleure 10 allocation des fonds. 11 9456 Je pense que l'annonce que l'on fait 12 aujourd'hui de la création du Fonds de programmation 13 Astral, qui va d'abord s'intéresser au financement de 14 documentaires de haut calibre, va tout à fait dans une 15 de ces directions pour aider ce financement-là. 16 9457 COMMISSIONER WILSON: Okay. I was 17 going to ask you, actually, about your suggestion with 18 respect to the inclusion of documentaries in the 19 under-represented program categories, apart from the 20 fact that you have Canal D and Canal D does exhibit 21 documentaries, so there would be some motivation from 22 that aspect, but I think your response has clarified 23 that for me, especially with respect to the French 24 market. 25 9458 M. ROY: Je pense qu'au-delà de Canal StenoTran 2033 1 D le documentaire a connu au cours des dernières années 2 sur la scène internationale un regain de popularité. 3 Il y a de plus en plus de demandes qui vont dans ce 4 sens-là, de demandes de licences, de nouvelles licences 5 qui veulent proposer du documentaire. Alors ce n'est 6 pas seulement pour un besoin immédiat de Canal D mais 7 bien dans un trend qui s'inscrit dans une mouvance 8 internationale où le documentaire est de plus en plus 9 apprécié des publics. 10 9459 COMMISSIONER WILSON: And in fact I 11 guess a number of the interveners to this proceeding 12 have made the point that, in addition to drama, 13 considering Canada's reputation for producing 14 documentaries and the quality and how exportable they 15 are, that they really should be considered, along with 16 drama, as one of the most important ways for us to 17 express our national character. 18 9460 M. ROY: Absolument. 19 9461 MR. BUREAU: And, Madam Wilson, I 20 think that, when we talk about documentaries, we wish 21 to stress that we are not only talking about what we 22 call "les documentaires d'auteur" but we talk about 23 documentaries in its larger sense, because there are a 24 number of new categories of documentaries that are done 25 now. At the present time the Telefilm definition only StenoTran 2034 1 talks about the documentaires d'auteur, and we wish to 2 mention here that documentaires should be much larger 3 than the definition that is currently used by Telefilm. 4 9462 COMMISSIONER WILSON: Do you have a 5 definition you would like to give us -- 6 --- Power outage / Panne de courant 7 9463 MR. BUREAU: That will give us time 8 to think about it! 9 --- Short pause / Courte pause 10 9464 COMMISSIONER WILSON: I think as the 11 lights went out I was just asking if you would be able 12 to suggest a wider definition than the one that's 13 currently used by Telefilm. If you don't have it right 14 off the top of your head right now you could perhaps 15 supply it to us before the 15th of October. 16 9465 MR. ROY: Yes, we will do that. Je 17 pense que, de la même façon qu'il y a différents genres 18 de dramatiques -- il y a des séries, des mini-séries, 19 des téléfilms -- il y a aussi différents genres de 20 documentaires. Le documentaire d'auteur est un des 21 genres de documentaires, mais il y a des documentaires 22 historiques, biographiques, animaliers. 23 9466 Donc la définition de "documentaire" 24 devrait couvrir beaucoup plus de genres que celle de 25 Téléfilm, qui a été instituée à une époque où c'était StenoTran 2035 1 d'abord du documentaire d'auteur qui se produisait et 2 dans des buts peut-être aussi de limiter la demande 3 face à des fonds qui étaient limités. Mais aujourd'hui 4 Téléfilm interprète cette définition d'une façon très 5 large et accepte d'autres genres de documentaires. 6 9467 COMMISSIONER WILSON: The other 7 suggestion that you make in terms of support for 8 under-represented program categories is that the 9 definition of original first play be adjusted, but I 10 noticed in your submission you say a program that has 11 been previously exhibited by a truly discretionary 12 service, pay or pay-per-view, and a program that is 13 exhibited for the first time on a pay or specialty 14 service in a language other than the language in which 15 it was initially exhibited by another broadcaster. 16 9468 The CFTPA has suggested a slightly 17 different adjustment of that definition of "first run", 18 and I am just wondering if you could tell me why you 19 think it should be limited to the pay and specialty and 20 not extended to conventional broadcasters. Is there 21 some reason for that? 22 9469 M. ROY: Je pense que ce sont surtout 23 les services spécialisés et les pay qui ont des 24 conditions de licence rattachées à de la production 25 originale en première fenêtre. C'est peut-être pour ça StenoTran 2036 1 qu'on a voulu concentrer de ce côté-là. Cette mesure a 2 été instituée pour éviter les abus, afin que des 3 productions produites dans une langue ou dans une autre 4 ne soient pas doublées par la suite et deviennent des 5 productions originales. 6 9470 Alors ce que l'on propose aujourd'hui 7 pour éviter ces abus-là, c'est qu'une émission ou qu'un 8 programme soit considéré comme original en première 9 fenêtre en autant que le diffuseur y aille par 10 pré-achat, donc à l'étape de la pré-production, et donc 11 fasse partie de la structure financière, du montage 12 financier du projet, et ce, par fenêtre et par langue, 13 anglais ou français, au Canada. 14 9471 MS de WILDE: If I can just add a 15 slight precision to that, underlying the whole idea of 16 expanding the definition of what would qualify as first 17 play is a desire to promote multiple contributions from 18 different players within the system to the financing of 19 a program. So that's why we stress it is important 20 that the player come in initially, when the financing 21 is being put in place, and then what that in fact 22 produces is a bigger budget, a stronger budget and a 23 stronger program. 24 9472 So, fundamentally, we don't have a 25 problem with little differences between our suggested StenoTran 2037 1 definition and the CFTPA's; the policy goal that we 2 would like to stress is let's encourage as many players 3 as possible to come to the table and support a given 4 program. 5 9473 COMMISSIONER WILSON: Okay. Thanks 6 for the clarification. 7 9474 On page 2 of your Executive Summary 8 and then on page 32 of your submission you talk about 9 feature film and you say that we should ensure that 10 conventional broadcasters pay a complementary role to 11 pay and specialty services and you talk about 12 contributions on page 32, contributions by 13 non-regulated sectors involved in distribution and 14 exhibition of feature films. 15 9475 I am just wondering if you could 16 explain how you see that working. 17 9476 MS de WILDE: I would be delighted 18 to. 19 9477 The feature film industry is one that 20 is being looked at with great interest right now in 21 Canada, and I think we are at a moment that is perhaps 22 a really propitious one, but the whole area is one that 23 is extremely challenging to everybody who plays in the 24 area. It is one where the budgets for movies are, by 25 their nature, much larger than they are for other StenoTran 2038 1 categories of programming. So the challenge is to 2 produce more and better movies in a market that also 3 faces or sits on top of the largest and most successful 4 producer of movies, namely the United States. 5 9478 So when we look at where we have been 6 successful in extracting contributions to the creation 7 of movies, we can point to the broadcasting sector, and 8 frankly the broadcasting sector, namely pay television 9 and pay-per-view, drives $23 million into the creation 10 of Canadian movies every year, which compares pretty 11 favourably to even what we managed to put together from 12 public funding to Canadian movies, which is probably in 13 the neighbourhood of about $55 million. 14 9479 So, to your question of how would we 15 harness unregulated players and get them to make a 16 contribution, that is one of the great thorny questions 17 because there is no regulatory body like the CRTC that 18 can look at video rentals, for example. So that is a 19 question that the Feature Film Policy Advisory 20 Committee is wrestling with, recognizing that we have 21 an example of something that works. Could it be 22 applied, obviously in a different way to those players 23 who aren't currently contributing back to Canadian 24 movie production although they are involved in the 25 exhibition of movies. StenoTran 2039 1 9480 Theatrical is obviously also another 2 window that, if you could tap the revenues that are 3 generated in theatrical exhibition, that would be an 4 additional source. 5 9481 So I think, in summary, the need is 6 to find additional sources of revenue to support the 7 creation of movies. 8 9482 When we look at the role that other 9 broadcasters could play with regard to Canadian movies, 10 the point we want to stress is it is an under-financed 11 sector, so let's not do anything that would simply move 12 dollars from one portion of the broadcasting sector to 13 another portion; let's make sure that in fact in the 14 end we end up with incremental new dollars put into 15 Canadian movies. 16 9483 So, to be really clear, let's not 17 create a system where, for example, the CBC would 18 decide to buy out all of the windows for a movie 19 because at the end of the day the producer doesn't end 20 up with more dollars, all he ends up with is dollars 21 from one window instead of from another. 22 9484 That's really the two points I think 23 that are important. 24 1135 25 9485 COMMISSIONER WILSON: I would like to StenoTran 2040 1 move now to some of the comments that you made about 2 ensuring a distinct Canadian programming rights market. 3 On page 14 of your submission you state that: 4 "A Canadian domestic market for 5 programming exhibition rights is 6 achieved as a result of a 7 complex set of legislative and 8 regulatory tools, each of which 9 is critical to maintaining a 10 sustainable Canadian 11 broadcasting system market." 12 9486 And you state that tools include the 13 licensing power held by the Commission, the Canadian 14 ownership and control rules, and oversight by the 15 Commission of U.S. satellite services which are carried 16 by licensed broadcasting distribution undertakings. 17 9487 On page 16, when you talk about the 18 list of eligible satellite services, you say: 19 "If services on the List were 20 duplicative of Canadian 21 services, the latter would find 22 themselves competing for the 23 same programming rights in the 24 Canadian market (likely on an 25 exclusive basis)." StenoTran 2041 1 And you made this point earlier: 2 "Due to the size differentials 3 between US services and Canadian 4 services, the dominant 5 purchasing power of the US 6 services would result in their 7 successful purchase of North 8 American-wide ... rights..." 9 9488 The way you describe it, in the 10 absence of a continuing moratorium on adding services 11 to the list, it sounds like we have all the tools that 12 we need to protect Canadian programming rights, but we 13 have heard from a number of intervenors that there are 14 already foreign services doing just that, buying up 15 North American-wide rights. I am just wondering if you 16 could tell me if you are aware of this phenomenon, does 17 it have an effect on you at all, and what would you 18 suggest is the best way to try and deal with that. 19 9489 MS de WILDE: What we are suggesting 20 in enumerating those three tools is that they are 21 critical tools that give us a handle on defining a 22 separate rights market for Canada. They are not a 23 slam-dunk guarantee that an American player will decide 24 not to buy North American rights, but what it ensures 25 is that in the case of those Canadian services, they StenoTran 2042 1 have a chance to go and buy Canadian rights. 2 9490 But if you were to take the most 3 dramatic example of an American movie service, but for 4 the fact that we have a licence for TMN or Super 5 Channel in the west, we would have no standing to go to 6 the table and talk to the U.S. studios and say, "We 7 want to buy the rights for Canada for --" 8 9491 COMMISSIONER WILSON: But for the 9 fact that you have a licence and they don't, they can't 10 come, except through the grapevine. 11 9492 MS de WILDE: That's correct, and it 12 really is one of those "but for" conditions. It's like 13 it's an essential one that you have to have the licence 14 from the Canadian regulator in order to go to the table 15 and then there is really no incentive in the case of 16 that niche -- namely, movies -- for the American 17 rightsholder to sell the rights for North America 18 because there is nobody who is authorized to distribute 19 them in Canada in the pay television window, other than 20 us and our colleagues in the west. 21 9493 COMMISSIONER WILSON: Another one of 22 the recommendations that you make is with respect to 23 redefining the role of the CBC and you stress, in 24 particular, the differences between the CBC and the 25 English-language market and the SRC in the StenoTran 2043 1 French-language market in terms of the impact of its 2 programming strategies on these respective markets. 3 9494 I was interested in your comments 4 about CBC Radio vis-à-vis stressing the distinctiveness 5 and complementarity of the radio services. It has 6 occurred to me that CBC Radio has been very, very 7 successful in carving out its identity as a public 8 broadcaster and that TV could probably learn something 9 from it, but one of the ways you say that it has 10 developed this distinctiveness is that their approach 11 has been to withdraw completely from the advertising 12 market and I am just wondering, in view of the 13 competition posed by SRC in the French market and by 14 the CBC to a lesser extent in the English market, are 15 you suggesting that they should withdraw altogether 16 from advertising? 17 9495 MR. BUREAU: A few years ago when 18 Radio-Canada decided to go without advertising on 19 radio, it was after a long period of discussion where 20 people were talking about the terrible impact it would 21 have and things like that. Radio-Canada has shown that 22 they can offer a national service of very high quality 23 that is still very "popular" by Nielsen standards or 24 BBM standards, that it is still there, that it is still 25 being appreciated by Canadians. StenoTran 2044 1 9496 Obviously, they had to be very 2 creative, very demanding of their people, their 3 creators and producers and everybody, but they are 4 doing a very good job, an excellent job. As a matter 5 of fact, it's a fantastic job that they are doing at 6 the present time on radio in any market and in fact 7 even against very aggressive commercial radio stations 8 they are still playing a very important, vital role in 9 any market. 10 9497 We are saying CBC and Radio-Canada -- 11 and Radio-Canada probably in particular -- could 12 probably learn from that experience and what it would 13 mean is that they would probably have to -- well, be a 14 little bit more cautious, if I may use that term, in 15 terms of their way of expending their money to acquire 16 programming. It would be less frustrating for their 17 competitors in the market to see that for a program 18 that used to be bought at, let's say, $5,000 for half 19 an hour, CBC or Radio-Canada is paying two to three 20 times that amount of money now, out-bidding obviously 21 the commercial competitors. 22 9498 We are saying there has been over the 23 past few years a number of discussions involving the 24 conventional broadcasters, in particular, in the 25 French-language market saying, "We are in an unfair StenoTran 2045 1 situation vis-à-vis la Société Radio-Canada." We are 2 saying that we are -- 3 9499 COMMISSIONER WILSON: Are you in an 4 unfair position vis-à-vis Radio-Canada? 5 9500 MR. BUREAU: We are saying that from 6 a specialty service point of view, we are beginning to 7 feel the same thing. Pierre Roy might be able to add 8 to that because he is involved in Canal D, which is 9 involved in the type of programming that RDI, for 10 example, is also involved in and la Société 11 Radio-Canada is more and more involved in, although 12 they were not that involved in before l'arrivée de 13 Canal D. 14 9501 M. ROY: On parle de Canal D, mais il 15 faut parler aussi de Canal Famille. 16 9502 Radio-Canada a diminué sa production 17 originale pour enfants du côté francophone, et est 18 allée plus du côté des acquisitions. Ce faisant, on 19 est en compétition directe avec eux sur le marché des 20 acquisitions canadiennes et étrangères. Il est certain 21 qu'une chaîne de spécialités ne peut pas lutter avec un 22 diffuseur conventionnel qui jouit à la fois de fonds 23 publics et de revenus publicitaires. 24 9503 Nous subissons dramatiquement cette 25 concurrence-là, autant à Canal Famille qu'à Canal D, et StenoTran 2046 1 c'est une concurrence déloyale tout à fait. 2 9504 Comme disait André, ils n'offrent pas 3 seulement 25 ou 50 pour cent de plus que les licences 4 qu'on est capable de payer, mais c'est souvent deux à 5 trois fois le prix qu'on offre pour des émissions. 6 Alors, c'est vraiment disproportionné comme 7 concurrence. 8 9505 MR. BUREAU: What we suggest, Madam 9 Wilson, is that there should be more collaboration -- 10 more complementarity, more collaboration between la 11 Société Radio-Canada and the other ones, including the 12 conventional broadcasters or the specialty services. 13 At the present time we don't see that collaboration 14 existing and, in fact, whether it is a question of 15 movies that are acquired by CBC or la Société 16 Radio-Canada or by talking about children's programming 17 or documentaries, instead of collaborating and doing 18 things together, they use their leverage to acquire 19 exclusive rights and I don't think it's in the best 20 interests of the overall system. 21 9506 COMMISSIONER WILSON: We have had 22 quite a number of intervenors this week talking about 23 the CBC, so much so that they issued a press release 24 this morning I think talking about some of their 25 contributions, but how would you go about encouraging StenoTran 2047 1 that more collaborative approach? 2 9507 MR. BUREAU: I hope we will have an 3 occasion to be more specific when they come for their 4 renewal. If we can wait for that, we would like to 5 participate there. We believe that CBC still has a 6 very major role to play in the Canadian broadcasting 7 system. Don't misinterpret, please, what we are 8 saying. We are saying times have changed. Everybody 9 has to adapt to the new environment and they should, 10 too. We will come up and make some suggestions. 11 9508 COMMISSIONER WILSON: So, I guess at 12 that time we can look forward to you talking a little 13 bit more about how the Commission -- you say the 14 Commission should urge the CBC to refocus on its 15 mission as a national public broadcaster. Of course, 16 when they appeared here, they showed us their schedule 17 for this year. It's very Canadian. There is maybe 18 five per cent foreign programming in it, if that, but I 19 guess we will wait to talk about that as well. I'm 20 sure you will have some specific ideas. 21 9509 With respect to stimulating Canadian 22 independent production, you state on page 20 of your 23 submission that in order to ensure a strong domestic 24 production industry on which to build an export base, 25 it will be critical to ensure maximum contributions StenoTran 2048 1 from all Canadian broadcasters. We have heard a range 2 of proposals on what the meaning of the word "maximum" 3 should be from the broadcasters who have suggested that 4 we leave things essentially as they are now and focus 5 on viewership to the independent producers who have put 6 forward what they call their 10/10/10 plan. 7 9510 I am just wondering what you mean by 8 "maximum", if you have any specific ideas, and also 9 what do you mean by "ensure" in terms of extracting 10 this contribution. Do you have a formula in mind, are 11 there specific regulatory incentives? 12 9511 MS de WILDE: The way that we have 13 approached this issue is to look at what has worked 14 with the conditions of licence that are currently 15 applied to pay and specialty, which require a 16 percentage of every dollar of revenue earned to be 17 returned into Canadian programming. So, we think that 18 that kind of an approach, a percentage of the revenues 19 going into Canadian programming is the preferable 20 approach to tap into the contribution of the 21 conventional broadcasters. 22 9512 When it comes specifically to the 23 issue of the contribution that they would make to 24 independent production, there we believe it is 25 important that there be a specific identified StenoTran 2049 1 contribution that does flow from conventional into 2 independent production and there we fall back on the 3 approach that the Commission has adopted with regard to 4 specialty services where there is a condition that it's 5 fine-tuned and reflects the individual circumstances, 6 the niche, the type of programming that a specific 7 service would have and we suggest that really it is 8 that kind of a case-by-case approach that does produce 9 the best result. 10 9513 COMMISSIONER WILSON: Do you think 11 that having a specific spending requirement, a per cent 12 of revenue, is more effective than the exhibition 13 requirement? Currently, they have two options. They 14 can choose from A or B. I think a couple of networks 15 have combined, but do you feel that it's sufficient to 16 require the percentage without some exhibition 17 requirements as well? 18 9514 MS de WILDE: We believe that both 19 requirements are part of the tool kit and you need to 20 have the supply and then you need to have the 21 exhibition and that both are required. 22 9515 COMMISSIONER WILSON: One of the -- 23 in fact a number of the intervenors to this process 24 have said essentially the same thing, that if we are 25 creating programming for export, it's not Canadian StenoTran 2050 1 programming. I am just wondering if you could comment 2 on whether you see the two as mutually exclusive, if we 3 should be following two separate strategies in terms of 4 funding programming, one industrial strategy, one 5 cultural strategy, or do we find some way just to 6 satisfy both needs within the one system? 7 9516 M. ROY: Je pense que la première 8 condition pour réussir à l'exportation, il faut d'abord 9 avoir accès à un marché domestique important. Donc, 10 toutes les règles qui encouragent la production de 11 programmation canadienne doivent être d'abord en place 12 pour maximiser cette production canadienne, et ensuite 13 établir un marché domestique fort, et ensuite avoir 14 peut-être accès à l'exportation. 15 9517 Il y a des choses qui nous inquiètent 16 un peu actuellement quand on regarde les nouvelles 17 règles du Fonds canadien de télévision. La notion de 18 "super Canadian", on pense que c'est une notion qui 19 peut-être a sa place au Canada anglais pour éviter 20 certains abus, certaines séries américaines qui peuvent 21 être déguisées en séries canadiennes. Peut-être que 22 cette notion est nécessaire pour éviter ces abus-là, 23 mais pour nous au Canada français, on pense qu'on n'a 24 pas à s'inquiéter de cette notion-là. Nos productions 25 sont généralement fortement canadiennes. Le nombre de StenoTran 2051 1 points, de 10 sur 10 ou 8 sur 10, est très très élevé. 2 9518 Donc, nous redoutons un peu cette 3 notion de super canadienne, puisqu'elle pourrait 4 affecter notre capacité de coproduction. 5 9519 Contrairement au Canada anglais, qui 6 trouve une partie de son financement sur le marché 7 international par le biais de pré-vente, au Canada 8 français ce sont plutôt des coproductions qui sont 9 mises en place pour assurer le financement de 10 productions importantes. 11 9520 Pour donner des pourcentages, le 12 niveau de coproductions au Canada anglais est autour de 13 17 pour cent, et au Canada français, il est d'environ 14 50 pour cent du volume de production. Donc, on voit 15 bien que ces règles-là pourraient être dommageables si 16 elles étaient appliquées d'une façon universelle au 17 Canada français et au Canada anglais. 18 9521 MR. RILEY: Commissioner Wilson, if I 19 could just add one point, some of the discussion a 20 couple of days ago centred around children's 21 programming and particularly animation. A lot of 22 children's programming, including children's animation, 23 doesn't take place anywhere, especially animation. One 24 of Teletoon's tag lines is "It's unreal" because it 25 takes place somewhere in a fantasy land. StenoTran 2052 1 9522 So, the danger of requiring that a 2 maple leaf or a beaver appear in the program so that it 3 is identifiably Canadian, so that it qualifies for 4 funding, would, in our view, seriously be to the 5 detriment of the funding of children's programming, 6 which, of course, is one of the goals. 7 9523 So, in any effort to determine what 8 is the appropriate use of those funds, in addition to 9 balancing what is distinctly Canadian, one must also 10 look at what are the goals of that funding, and that is 11 to create a certain kind of programming. That is one 12 area, children's programming and particularly 13 animation, that might be overlooked in this effort to 14 come up with something that is intrinsically or 15 distinctively Canadian. 16 9524 COMMISSIONER WILSON: That's a good 17 point. I guess what I am trying to get at is just your 18 views on whether or not -- and maybe this goes to the 19 point that you are making, Mr. Riley -- industrial 20 programming is really strong enough to stand on its own 21 and that we shouldn't be giving funds to that area, 22 that we should be funding only Canadian programming, 23 whether it's animation and it's not set in a specific 24 place. I understand, I take your point. We met Dudley 25 the Dragon the other day in person. StenoTran 2053 1 9525 That's really the point that I am 2 trying to get at is that there have been some 3 suggestions that industrial programming such as 4 "Traders" or "Cold Squad" or "Due South" don't really 5 need the support of the public funds, that the public 6 funds should go more towards making that stronger sort 7 of domestic programming. 8 1150 9 9526 MR. BUREAU: I am not sure it is that 10 simple. I think that, if we were to look at the 11 category of documentaries, for example, we would see 12 that good documentaries that are produced in Canada 13 here, or are co-produced, as Pierre has alluded to, can 14 travel, can be exported, and they are essentially done 15 by Canadians, but they still have very a very large 16 attraction outside of the Canadian market. So they 17 don't need to be what you call the industrial type of 18 programs. 19 9527 We believe that they are pure 20 documentaries and we would have to be careful not to 21 deprive access to the Canadian funds for some 22 documentaries that would be done that would involve, 23 because of their nature, the history of the world at 24 some point because it would be the essence, for 25 example, of those series of documentaries, whether they StenoTran 2054 1 are biographies or whether they are on history like the 2 war or things like that. It is pretty difficult to 3 imagine how you could get to be that super Canadian if 4 we were to try to give a view of what has happened 5 during the war overall, not just in Pointe-du-Lac. 6 9528 So we would have to determine how it 7 could have access to that and I think that we have to 8 be careful not to close the access to the funding for 9 these types of programs. 10 9529 COMMISSIONER WILSON: Okay. The next 11 area that I was going to talk to you about was direct 12 access by the broadcasters to the funds, but in your 13 oral presentation this morning you actually answered 14 the question that I had prepared, which was -- well, 15 actually, maybe you haven't. 16 9530 They want greater access to the 17 Equity Investment Program, the broadcasters or 18 broadcaster-affiliated production companies, and one of 19 the arguments that they are making is that they believe 20 it is incongruous that production companies who hold 21 specialty licences like Atlantis Alliance -- or 22 Alliance Atlantis, I can't remember which one it is -- 23 hold broadcasting licences and they have access, so why 24 shouldn't they. 25 9531 You said this morning, we suggest StenoTran 2055 1 that all conventional broadcasters be required to 2 devote a percentage of their Canadian programming 3 expenses to programming produced by non-affiliated 4 companies and that their access should be limited to 5 productions that the broadcaster cannot exhibit in 6 their first window. 7 9532 So, with appropriate safeguards in 8 place, would you feel comfortable with their access? 9 9533 MR. BUREAU: I think that it is 10 something that needs to be monitored over time, but, 11 yes, we have tried to come up with a solution to the 12 debate that has been going on between those who say no 13 access at all and those who say, well, why not, because 14 our competitors in the specialty services have access. 15 9534 So we are saying, all right, let's 16 try to establish a fair type of approach provided that 17 they don't use that money to produce a program or a 18 series or whatever to be exhibited in the first window 19 on their own service. If it is not the case, then, let 20 them have access. But keep in mind that if it were to 21 end up depriving the independent production sector of 22 the money they need to remain strong, there will be an 23 impact, and that impact will be felt very dramatically 24 by the sector of the specialty services. 25 9535 COMMISSIONER WILSON: Okay. I guess StenoTran 2056 1 another issue that you raised this morning in your 2 submission with respect to the funds was, you suggested 3 the allocation of 50 per cent of the financial 4 resources of the CTF to productions intended for the 5 CBC/SRC needs to be reviewed because it has become 6 disproportionate to the actual weight of the public 7 broadcaster in the Canadian television universe. 8 9536 I wonder if you could just expand a 9 little bit more on that. 10 9537 M. ROY: Quand le pourcentage de 50 11 pour cent a été établi, il existait beaucoup moins de 12 télévision conventionnelles et certainement presque pas 13 de services spécialisés, et ce pourcentage-là est 14 demeuré le même au cours des années après l'ajout de 15 chaînes conventionnelles -- on parle de TQS par exemple 16 au Québec -- de nombreux services spécialisés et qui 17 doivent se partager toujours un 50 pour cent dans des 18 pointes de plus en plus petites. 19 9538 Alors quand on prend le poids relatif 20 de la CBC dans la programmation canadienne, son poids 21 relatif au niveau du volume de production canadienne 22 est d'environ un-tiers pour la CBC et deux-tiers pour 23 le reste de l'industrie, et on pense que ça pourrait 24 servir de barème plus réaliste pour faire face à la 25 nouvelle situation que l'on vit aujourd'hui, sans StenoTran 2057 1 compter les nouvelles licences qui seront accordées 2 éventuellement et qui viendront encore diminuer chacun 3 des morceaux qu'on à se partager dans le 50 pour cent 4 actuel. 5 9539 COMMISSIONER WILSON: And yet there 6 are some who might say that the CBC really bears the 7 burden of exhibiting Canadian programming and 8 supporting Canadian programming, that the conventional 9 broadcasters, with their prime time schedules 10 essentially full of American programming -- 11 9540 M. ROY: Du côté des services 12 spécialisés, nous, on a des engagements très fermes à 13 diffuser de la programmation canadienne, on a des 14 ressources beaucoup plus petites que les 15 conventionnelles... 16 9541 COMMISSIONER WILSON: That's true. 17 9542 M. ROY: ... on a des ressources de 18 revenus de publicité beaucoup plus limitées, et donc 19 ces fonds-là sont essentiels pour permettre le 20 financement de programmation canadienne de qualité, 21 comme ce à quoi s'attend le public. 22 9543 COMMISSIONER WILSON: Thank you. 23 9544 You made another point in your oral 24 submission this morning on the contribution of 25 non-Canadian services and you say that you agree with StenoTran 2058 1 the suggestion made by SPTV to use all advertising 2 avails on U.S. satellite services to promote Canadian 3 programming and Canadian services. There have been 4 other suggestions that we should actually find some way 5 of extracting some kind of financial contribution from 6 them to Canadian programming, but I wonder if you could 7 just expand on that a little bit more. 8 9545 MR. RILEY: The idea of harnessing 9 some sort of contribution is a good one, and looking 10 for ways to do so involves a number of I guess impacts, 11 including cross-jurisdictional impacts; for example, 12 with respect to saying, well, a certain percentage of 13 the wholesale fee must go to the CTF fund may involve 14 simply an increase in the actual wholesale fee. So, in 15 other words, if the price was X and 5 or 25 per cent 16 was required now to be put into the fund, I think in 17 pretty short order you would see the price of those 18 U.S. services be X plus that 5 or 25 per cent, which 19 doesn't I think achieve the goal that was -- 20 9546 COMMISSIONER WILSON: Or passes it 21 through to the consumer. 22 9547 MR. RILEY: Essentially, that's what 23 it does; it goes right through and it doesn't achieve 24 that particular goal, it is just an increase in the 25 price. StenoTran 2059 1 9548 So that's why we suggested that at 2 least at a starting point all the use of the avails 3 would be something that can be done quite simply, quite 4 directly, and without maybe an unintended consequence 5 that doesn't, in the long run, benefit. 6 9549 COMMISSIONER WILSON: I am just 7 wondering if you floated this idea to any of the U.S. 8 services and what their response might have been. 9 9550 MS de WILDE: Well, they didn't laugh 10 right in my face; in fact, I had the beginnings of 11 serious conversations with a couple of them and they 12 don't walk away nor do they tell me that I am crazy. 13 So I thought that was a very good beginning. 14 9551 COMMISSIONER WILSON: Maybe they were 15 just being polite. 16 9552 MS de WILDE: It doesn't usually 17 happen to me. 18 9553 COMMISSIONER WILSON: People aren't 19 usually polite to you? 20 9554 MS de WILDE: Not just to be polite. 21 9555 MR. RILEY: Another point is that the 22 U.S. services, when selling those advertising avails, 23 not in all cases is there payment for the Canadian 24 market because quite often the product being sold is 25 one that even if a Canadian says, "Oh, that's terrific, StenoTran 2060 1 I really like that", it is one that's not going to be 2 purchased in the United States or is not available in 3 Canada. So it is not as if it is removing something 4 that's already there or something that has been paid 5 for and depriving the advertiser of a benefit that the 6 advertiser has paid for. 7 9556 MR. BUREAU: But let's not kid 8 ourselves, they will feel that this is something that 9 is hurting them -- 10 9557 COMMISSIONER WILSON: Sure. 11 9558 MR. BUREAU: -- and what we are 12 saying is that we are trying to find a way where the 13 consequence will not be an immediate increase in the 14 price that will have to be borne by the subscribers. 15 1200 16 9559 COMMISSIONER WILSON: Okay. You did 17 submit a lot of material with respect to the role and 18 the impact of pay and specialty services on the 19 Canadian broadcasting system. We will be exploring 20 that issue in a fair amount of detail with SPTV when 21 they appear, so I am not going to go through all of 22 that with the exception of one of the proposals that 23 you made which I was fascinated. It's nice to actually 24 have somebody offer something up, the 2 per cent 25 digital kicker. StenoTran 2061 1 9560 I wonder if you would just like to 2 explain what prompted that largesse. 3 9561 MR. BUREAU: We are used to being 4 very generous with cable. 5 9562 MS de WILDE: In all seriousness, the 6 rollout of digitable cable is something that is of 7 pivotal significance to the pay television sector in 8 particular. What we did was we said, you know, piracy 9 is such a huge problem that if an incremental 10 expenditure on Canadian programming could help to 11 trigger regulatory attention to it, it's a really good 12 tradeoff from our point of view. 13 9563 When you think about the way in which 14 digital technology, really new encryption technology, 15 would change the revenues and hence the contribution of 16 pay-tv, we just find it a very exciting vision of the 17 world. We are more than prepared to step up to the 18 plate on that. I mean, what it amounts to is it would 19 increase our Canadian content spending by about 10 per 20 cent. We think that that's something that we are 21 prepared to do. 22 9564 COMMISSIONER WILSON: Thanks. 23 9565 Mr. Bureau, I would just like to ask 24 you to comment on a couple of things for me. The first 25 one is the CAB's viewership model. I'm just wondering StenoTran 2062 1 if you have given any thought to how this would 2 increase not only the quality but the quantity of 3 Canadian programming. 4 9566 I have been trying to come up with 5 sort of the business case for it, it's viewership, it's 6 greater ad sales equals higher contribution to Canadian 7 programming, but how do we get that out of this model? 8 I'm just wondering if you have any thoughts. 9 9567 MR. BUREAU: That's one case where I 10 didn't feel any frustration at being sitting in your 11 place. When I heard that proposal the first day of the 12 hearing, I was trying to understand it and, quite 13 frankly, I'm not sure I do still understand exactly how 14 it would work and how it would improve the situation. 15 9568 I'm not saying that in a 16 self-deprecating way. I am really looking at it. 17 Until your colleague asked a very specific question and 18 said that 35 per cent objective or goal that you are 19 talking about, would that include the audience from CBC 20 and the specialty services, and the answer was 21 obviously yes. 22 9569 That I don't understand because the 23 32 per cent I had understood was for conventional, the 24 existing conventional level of audience. We are 25 probably already above the 35 per cent if you add to StenoTran 2063 1 that the audience to the specialty, and CBC in 2 particular. 3 9570 I'm not sure I understand the 4 fundamentals of this proposal there. Maybe it's my 5 limited understanding of the proposal that makes me 6 feel nervous about making further comments on that. 7 9571 COMMISSIONER WILSON: Okay. One 8 other comment that came out of the CAB presentation was 9 one of their consultants who was with TD Security said, 10 and he was actually quoted in Maclean's magazine this 11 week, to put it bluntly from a financial standpoint, 12 Canadian programming is a cost of doing business. 13 I just wonder if -- 14 9572 MR. BUREAU: I couldn't believe it 15 when I heard that. 16 9573 THE CHAIRPERSON: That's when the 17 lights went out. 18 9574 MR. BUREAU: Surely as far as I am 19 concerned it happened. 20 9575 COMMISSIONER WILSON: It's clear why 21 he is in securities and not sitting up here, for 22 example. 23 9576 MR. BUREAU: It has been the story of 24 the Canadian broadcasting system. 25 9577 COMMISSIONER WILSON: But is there StenoTran 2064 1 any truth to that comment? 2 9578 MR. BUREAU: Excuse me? 3 9579 COMMISSIONER WILSON: Is there any 4 truth to that comment in your mind that it is just a 5 cost of doing business? 6 9580 MR. BUREAU: There are some aspects 7 of it that are true, but listen. We are successful 8 with Canadian programming. We are successful with 9 Canadian programming in categories that are 10 under-represented categories. 11 9581 I can't believe that I would hear 12 something like that from a broadcaster. Thank God, 13 he's not. 14 9582 COMMISSIONER WILSON: No, he's not. 15 9583 MR. BUREAU: Thank God he's not our 16 banker. I just couldn't believe it. It is, of course, 17 the basis for the maintenance of a strong, distinctive 18 Canadian broadcasting system that we have to invest in 19 Canadian programming. If he has not understood that, I 20 don't know what he was doing for the CAB in particular. 21 I can't believe it. 22 9584 MS de WILDE: But in fact it all 23 depends on how far back you step to look at what he's 24 suggesting. I think he was looking at it from rather 25 close up and saying "It's a line item on the P&L and it StenoTran 2065 1 doesn't pay out when I calculate the advertising 2 dollars that I receive from each hour". 3 9585 Where we would look at it is from 4 slightly further back which is, frankly, our raison 5 d'etre. If we weren't delivering Canadian programming 6 to Canadian viewers, there would be a very weak 7 argument for why we have the privilege of regulatory 8 licences and the regulatory licences are the 9 underpinnings of our businesses. 10 9586 I think he was just honing in a 11 little bit too narrowly on the P&L, quite frankly, and 12 not looking back at what underpins the assets. 13 9587 MR. BUREAU: Thank you, Lisa. 14 9588 COMMISSIONER WILSON: You're looking 15 a little flushed, Mr. Bureau. 16 9589 MR. BUREAU: That's why I never come 17 alone. 18 9590 COMMISSIONER WILSON: Those are my 19 questions, Madam Chair. 20 9591 Thank you very much. 21 9592 THE CHAIRPERSON: Commissioner 22 Pennefather. 23 9593 COMMISSIONER PENNEFATHER: Thank you. 24 9594 Well, now that Life has got you 25 going, I think we will continue. Another area -- StenoTran 2066 1 9595 MS de WILDE: I thought that might 2 get a rise. 3 9596 MR. BUREAU: I heard. Don't you 4 dare. 5 9597 COMMISSIONER PENNEFATHER: Okay. 6 Well, I have a question for Madam de Wilde as well in 7 an area she is passionate about. 8 9598 What I want to talk to you about, Mr. 9 Bureau, Commissioner Wilson raised the rights issue. 10 You are very clear on the importance of maintaining 11 rights in this country. Madam de Wilde also spoke to 12 three basis elements in the current regulatory 13 framework, licensing, the ownership, direction and 14 regulations such as the eligible risks. 15 9599 That being said, considering as you 16 mentioned earlier your own involvement in a number of 17 ways with the whole issue of changing international 18 environment and the trade environment, are these three 19 tools going to be sufficient? Will they run into very 20 serious problems soon in terms of particularly the 21 American reactions to our ability, in fact, to maintain 22 this framework? Are there other tools we should be 23 exploring now to assure that we do maintain a separate 24 market for products in this country? 25 9600 MR. BUREAU: Well, I guess first of StenoTran 2067 1 all these tools have worked pretty well. Of course, 2 they are being discussed and some foreign countries' 3 representatives would like to have them modified. 4 9601 Our government has up to now made 5 sure that we wouldn't change our position on these 6 issues. Frankly, it's not a new debate. These issues 7 have been there and have been debated for the past 30 8 years. The objectives of the rightholders in the 9 United States have been the same since then. They are 10 a little bit more cautious now in terms of what they 11 say, but at times where they are sitting with 12 international forums, they come back and they try again 13 to modify those rules because what we have done here is 14 being a model for what is being developed in other 15 countries. 16 9602 The thorn that we represent for the 17 United States to be able to have free access to the 18 rest of the world, this damn thing that is existing in 19 Canada, so if they could change it here, they would be 20 probably free. It would be easy for them to go around 21 the world. 22 9603 We are the first to be attacked. 23 There is no question about that. At the regulation, I 24 think that the tools that we have have worked well and 25 we should maintain them and make sure that we don't StenoTran 2068 1 abandon them. 2 9604 At the level of policy, at the level 3 of government policy, there are other ways of facing 4 those attacks or facing those demands. I believe that 5 this is probably where new tools are being developed or 6 will be developed to try and ensure the strengthening 7 of our broadcasting system vis-à-vis on that specific 8 question and support that needs to be maintained. 9 9605 I am sure that there are new tools 10 that are being contemplated. We have heard about some 11 of them and whether they are new forms of treaties, I 12 mean international basis, whether they are support from 13 other countries that are being gathered around these 14 ideas and are being supportive of these, but that's at 15 another level, at the level that will continue to 16 maintain the support for our regulatory approach. 17 9606 COMMISSIONER PENNEFATHER: Thank you. 18 That gives me some comfort. I know these issues are 19 not new, but there are certain new elements, I believe, 20 in the international trade discussions which I think we 21 must take a practical realistic look at. 22 9607 I wanted to ask Madam de Wilde on 23 digital. Commissioner Wilson did go back to you on the 24 piracy matter. You mentioned digital rollout and its 25 importance from the point of view of encryption. I'm StenoTran 2069 1 sure you also were referring it to from the point of 2 access for Canadians to a number of services. 3 9608 You didn't comment on digital in 4 terms of production and in terms of supply of Canadian 5 programs for the digital universe. Do you have any 6 comments on how ready we are or not, certainly from 7 your point of view, in terms of taking a Canadian 8 presence as services convert to digital? 9 9609 MS de WILDE: I probably don't have a 10 lot of details to add to that discussion. It certainly 11 is an issue that we look out at when we do three year 12 plans to understand what's coming up. There are some 13 portions of our businesses, movies in particular, where 14 the transition to digital will not be very difficult. 15 9610 When it comes to things that would be 16 more in the nature of a series, it will require changes 17 in the plant. It's coming and we all recognize that we 18 have to get ready for it. 19 9611 COMMISSIONER PENNEFATHER: You 20 mentioned a working group in your presentation this 21 morning. Could you expand on that and how it relates 22 to current groups such as Canadian Digital Television? 23 9612 MS de WILDE: Thank you. It is in 24 fact an idea that is much narrower in focus than 25 Michael McEwen's digital television group. As I StenoTran 2070 1 understand his effort, and we are part of that as well, 2 it is something that is looking at the whole 3 infrastructure from transmission through to television 4 sets whereas the issue that we are raising is the 5 really much more narrowly focused one of how do you 6 roll out digital distribution on the cable plant. 7 9613 What we are suggesting is that in the 8 same way that the Commission chaired some working 9 groups in order to push through some of the tougher 10 issues of competition in the telecommunications 11 services, we think that it would be really useful for 12 the Commission to set up a working group for the 13 Commission to chair a working group that would put 14 around the table all of the players who have an 15 interest in helping to develop a business plan that 16 will work. 17 9614 We all recognize that it has been 18 difficult to come up with that business plan, but we 19 recognize it is really important and we as pay 20 television services are more than prepared to 21 contribute to that exercise. There are undoubtedly 22 others in the industry who also have some ideas. 23 9615 What we need to find is additional 24 sources of revenue. We know that pay television will 25 derive some additional revenues with the rollout of StenoTran 2071 1 digital. There will be new media services that will 2 also provide a source of new revenues. We need to look 3 at whether there are creative regulatory incentives 4 that could help to make it fly. That's the kind of 5 exercise that we had in mind. 6 9616 COMMISSIONER PENNEFATHER: Thank you. 7 9617 Thank you, Madam Chair. 8 9618 THE CHAIRPERSON: Commissioner 9 Cardozo. 10 9619 COMMISSIONER CARDOZO: Thanks, Madam 11 Chair. 12 9620 A couple of questions. One of the 13 issues that was put before us a couple of days ago was 14 the matter of reflection of aboriginal people on TV. 15 This was on a presentation by Television Northern 16 Canada. Their sense was that there was very little 17 reflection of aboriginal people and usually when there 18 is, it's negative or stereotyped. 19 9621 I wonder if you have any thoughts or 20 how you approach this issue in the programming that you 21 do. 22 9622 MS de WILDE: In all of our 23 acquisitions or in the investment decisions that we 24 would make at the level of the pay networks, we use the 25 pay-tv standards and practices as an essential element StenoTran 2072 1 of any discussion that we have with a potential 2 producer. 3 9623 It is part of the mix that is put on 4 the table and the producers would understand that we 5 are looking for stories that reflect Canada. You know, 6 that's something that at the level of our 7 Vice-Presidents of Programming in particular, you know, 8 they have a mandate to help to trigger, be it series or 9 movies or made for pay television movies, that we will 10 add something to our programming mix that is Canadian. 11 9624 It is a challenge. It's something 12 that is part of our mandate. 13 9625 COMMISSIONER CARDOZO: Your networks 14 are involved in purchasing and commissioning 15 programming. 16 9626 MS de WILDE: When we look at movies, 17 in fact, you know, we have a role, but we are one of 18 the players at the table. 19 9627 COMMISSIONER CARDOZO: Yes. I am 20 wondering if you do it more in Family as opposed to 21 TMN. 22 9628 MS de WILDE: Yes. I think I should 23 turn to Len Cochrane who can talk to you about the 24 Family channel experience. 25 9629 MR. COCHRANE: I think, Commissioner, StenoTran 2073 1 that one of the great things that Teletoon or Family 2 Channel or Canal Famille does is not only buy from the 3 large independent but very much the small independent. 4 We're not sure we help create. We develop scripts. 5 9630 I think they come from all walks of 6 life. It's one of the great challenges that we have, 7 spending a huge amount of time with those new guys on 8 the block and seeing something on the screen gives us a 9 tremendous amount of pride. 10 9631 The ability for aboriginal or guys 11 who are animators who decide that they are going to try 12 and produce a series, it's very important for us, and 13 we all spend a lot of time with those small guys. 14 9632 COMMISSIONER CARDOZO: I don't want 15 to be putting you on the spot, but I wonder if you have 16 suggestions. I don't want to put you on the spot about 17 what you have or haven't done, but do you have any 18 suggestions about how to -- if you think that there is 19 room to reflect aboriginal people more on television -- 20 if you have any suggestions as to how it can be done at 21 the level of what you are doing. 22 9633 MR. RILEY: I might be able to give 23 actually a precise example. First of all, Teletoon 24 launched this year a program which in this case is 25 distinctively Canadian, "Nanook of the North", which StenoTran 2074 1 was a program that was launched this September. 2 Actually, the ratings have been quite strong for the 3 program. 4 9634 It's an adventure series based on the 5 stories of Nanook. The producers in question consulted 6 with aboriginal sources in the making of the series, so 7 it was true to the heritage. 8 9635 In all of our cases, I think what can 9 be done and what we do is to try and do the best job of 10 making ourselves available everywhere to give everyone 11 access and an opportunity to approach the network. For 12 example, we have a person that is specifically hired to 13 source out programming proposals from everywhere and 14 from everyone. 15 9636 The Ottawa Animation Film Festival is 16 taking place this week as we speak. We have 17 representatives, in fact that person, that developer of 18 new projects, is here. 19 9637 Last year the very successful 20 Animation Festival also launched a student animation 21 festival. We again appeared there. Everyone has 22 access to our network and we look at every single 23 proposal, as evidenced by some of the programming 24 that's appearing there. I know that's the same with 25 the rest of the networks that are in the group. StenoTran 2075 1 9638 I think we can continue to make 2 efforts in that area to develop those kinds of 3 projects. 4 1220 5 9639 COMMISSIONER CARDOZO: One of the 6 things -- that's very helpful, by the way -- that 7 television really in Canada pointed out was that the 8 CPF had set aside $1 million -- $2 million; $1 million 9 from each of the funds -- for aboriginal programming, 10 and they were pointing out that in fact that was below 11 the proportion of people; 2.8 per cent of the Canadian 12 population is aboriginal whereas 1 per cent of the fund 13 was reserved for that type of programming, programming 14 by aboriginal producers. 15 9640 What are your thoughts about that 16 idea of whatever the percentage is, and be it CPF or 17 one of the funds such as the one you are announcing 18 today, of having monies targeted to under-represented 19 categories within the under-represented categories? Do 20 you think that's a worthwhile way to go? 21 9641 MR. BUREAU: Mr. Cardozo, I think 22 that in fact Canadian broadcasters have been the first 23 in the world to really put on television the people 24 that form the diverse country that we are and the 25 ethnic people, the different kinds of people that are StenoTran 2076 1 forming part of this country here. Over the years we 2 have been very successful at doing that. We should in 3 fact do something about that. 4 9642 I am not sure that we have the exact 5 answer to your question this morning, but we should 6 find a way because they are really part of our lives. 7 So we should have them on television, or behind if they 8 are producing something, but I cannot give you a more 9 precise answer. 10 9643 COMMISSIONER CARDOZO: Okay, that's 11 fine. I guess part of that is whether we look at it as 12 just a social objective or whether there is a business 13 case in the whole issue of reflecting -- 14 9644 MR. BUREAU: Hopefully, it will be 15 both. 16 9645 COMMISSIONER CARDOZO: Yes. 17 9646 The other question I just wanted to 18 ask you was with regard to CBC. You mentioned that 19 they come in and outbid you not by a few per cent but 20 two or three times the amount. I am wondering if part 21 of your thinking is that the reason their numbers in 22 terms of Canadian programming are so much higher than 23 others is because they are able to do that or they do 24 that, and if they weren't in a market, would everybody 25 else's numbers in terms of Canadian programming be much StenoTran 2077 1 higher? Would you be able to afford a whole lot more 2 Canadian programming if CBC wasn't betting at the high 3 rates that they are, or was your question more just in 4 terms of buying American programming? 5 9647 M. BUREAU: Ce n'est pas seulement en 6 fonction des achats de programmation américaine, c'est 7 pour tous leurs achats que le problème se retrouve. Je 8 pense qu'il y a une différence de moyens. On est liés 9 à des budgets qui sont liés à nos revenus, qui sont 10 beaucoup plus limités. On n'a pas l'argent public dont 11 jouit la CBC pour supporter cette compétition-là. 12 9648 On a une profitabilité à assurer à 13 nos actionnaires au bout de l'année, alors on ne peut 14 pas comme ça "bidder" sur des programmes d'une façon 15 inconsidérée puisqu'on n'arriverait pas à maintenir une 16 business viable au bout du compte. 17 9649 COMMISSIONER CARDOZO: So is it your 18 view -- and I am pushing you a little bit here because 19 you didn't quite say this, but I am wondering if behind 20 what you are saying is that perhaps they are inflating 21 the market, and if they weren't doing that, you and 22 others would be able to do more Canadian programming. 23 9650 MS de WILDE: I think what we are 24 trying to say about the CBC is that, if they viewed 25 their role as less competitive with the private sector StenoTran 2078 1 and as more of playing a complementary and distinct 2 role, they then wouldn't attack their advertising sales 3 with ferocity, which in turn leads them to be willing 4 to pay higher amounts for a program because they 5 believe it will in turn support those advertising 6 sales. 7 9651 So it is really when you step back 8 and you say, if their role were different and they 9 weren't going after advertising revenues with the same 10 vigour, they would be, of course, forced to react to 11 their lower revenues by playing a different role when 12 it came to program acquisitions. 13 9652 COMMISSIONER CARDOZO: So it is not 14 just a matter of licence fees but advertising as well? 15 9653 MS de WILDE: I think it is the two 16 ends of the equation. 17 9654 COMMISSIONER CARDOZO: All right. In 18 a sentence, what would that unique role be for the CBC 19 that would not be other people's role? 20 9655 MR. BUREAU: Ah-ha! You are trying 21 to draw us into the next process. 22 9656 COMMISSIONER CARDOZO: Yes, I guess I 23 am. 24 9657 MR. BUREAU: I think, in order to be 25 fair with la Société Radio-Canada and CBC, we should, StenoTran 2079 1 at the time of their renewal, have a complete image of 2 what they want to do and a reaction that is based on 3 what is their plan for the future. We sincerely hope 4 at this point in time that the words "complementary" 5 and "collaboration" will mean something in fact in the 6 future of la société d'État and that we will see in 7 their plans for their renewal something that will 8 indicate to us that they are transforming their role a 9 little bit to adapt it to the new environment. 10 9658 They are not the only ones providing 11 programming to all Canadians any more. That's not the 12 case any more. So maybe they should do something 13 different, and by doing something different, they may 14 not need the same type of programming or the same type 15 of money or subsidies or access to advertising -- 16 maybe. We will see. 17 9659 COMMISSIONER CARDOZO: And if they 18 don't, then, we will count on you to give us the magic 19 answer to my question. 20 9660 Thanks very much. 21 9661 Thanks, Madam Chair. 22 9662 THE CHAIRPERSON: Commissioner 23 McKendry. 24 9663 COMMISSIONER McKENDRY: Thank you, 25 Madam Chair. StenoTran 2080 1 9664 I couldn't pass up the opportunity, 2 Mr. Bureau, to ask you a question, having sat where you 3 are sitting now while you asked me questions from up 4 here. 5 9665 MR. BUREAU: I hope you will be more 6 kind to me than I was to you. 7 9666 COMMISSIONER McKENDRY: Always. But 8 let me begin by saying it is very refreshing to be 9 reminded of your passion for things Canadian, and we 10 appreciate people coming to our hearing room and 11 speaking with passion about these things -- and please 12 come by yourself if you want. We welcome passion here. 13 9667 I am going to touch on something 14 Commissioner Wilson raised with you and Commissioner 15 Cardozo just raised too where, when you were speaking 16 to Commissioner Wilson, you said everybody has to adapt 17 to the new environment, and so should the CBC. 18 9668 My question really isn't about the 19 CBC, but I want to make sure I understand the new 20 environment from your perspective. Is it one of 21 fragmentation? Is that what you mean? 22 9669 MR. BUREAU: Well, it is one where we 23 have seen the number of services that are offered to 24 the Canadian population increase in a fantastic way, 25 where the quality of programming has increased, where StenoTran 2081 1 the thematic approaches have developed to the point 2 where a number of the things that only CBC was offering 3 in the past are now being offered, with quality, by 4 other services. 5 9670 So, in my mind, it raises the 6 question of, all right, now, since some of the things 7 that we were the only ones or almost the only ones to 8 offer with high quality are now being available at some 9 other address, should we not try to concentrate on some 10 of the other things that remain not completely taken 11 care of, or should we take the other way around and 12 evacuate those things into specialty services? 13 9671 I think that this is the overall 14 picture. I didn't want to be drawn into a discussion 15 about the specialty services, but you almost forced me 16 to go there. 17 9672 My feeling is that the CBC and 18 Radio-Canada are trying to develop their almost 19 business as do conventional broadcasters or specialty 20 broadcasters, and I am not sure that this is the way 21 for la Société d'État to look at its own role in the 22 future. And I am nervous that at some point the 23 government might say, "Why do we need la société 24 d'État, since it is doing in a large part what others 25 are already doing?" StenoTran 2082 1 9673 I think that for the sake of 2 maintaining, within a unique and distinctive Canadian 3 broadcasting system, a unique and distinctive role for 4 la société d'État, it is important that they look at 5 the environment and determine where can they play a 6 very specific role. 7 9674 In 1983 or 1984 I believe -- and that 8 shows you my age -- the government published I believe 9 it was a blue book in those years, I don't remember 10 exactly the colour, but I remember that Francis Fox was 11 Minister of Communications at the time and Mr. Juneau I 12 believe was at Radio-Canada. 13 9675 Mr. Fox came out with a book that 14 defined, even then, what should be the complementary 15 role of the CBC. Boy! It was shot in flame by 16 Mr. Juneau, who decided that he would have to be at the 17 Cabinet to fight against those silly ideas, and at some 18 point he became a member of the Cabinet. But, anyway, 19 the fact remains that even then there was, within the 20 government, some thinking about what should be the role 21 of the société d'État vis-à-vis the rest. 22 9676 Well, if at that time it was 23 important for them to look at that and define the 24 complementary role, imagine today. And I am always 25 nervous that at some point somebody at the government StenoTran 2083 1 level will ask the question, and I think we need a CBC 2 or Société Radio-Canada but with probably a more 3 focused role is in general what I would suggest. 4 1230 5 9677 COMMISSIONER McKENDRY: Thank you 6 very much. 7 9678 Let me ask a question now about theft 8 of your services, or Pay TV services, and the 9 conversion of the cable network to digital. 10 9679 My understanding is that in the 11 United States, the FCC has mandated that the set-top 12 box will have a separate security pod that will be 13 provided by the cable operator, and the box will be a 14 retail item that consumers will buy in retail outlets. 15 9680 Are you comfortable that the security 16 pod approach, where the security is not integrated into 17 the box, will provide the kind of security that you are 18 looking for? 19 9681 MS de WILDE: Yes, we are. Not only 20 does it provide new security, but it provides security 21 that can be changed when inevitably it is corrupted and 22 we have to find another way to shut down people who 23 have figured out a way around it. 24 9682 In other words, we don't delude 25 ourselves that it is the answer that will solve all of StenoTran 2084 1 our problems forever. I think everybody who works with 2 encrypted data knows that it is an ongoing challenge. 3 9683 But the beauty, as I understand it, 4 of the digital approach to encryption, and especially 5 the cards that you are adverting to, is that you can 6 change the cards -- on an infrequent basis, one 7 hopes -- in order to keep one step ahead of them. 8 9684 COMMISSIONER McKENDRY: You don't 9 anticipate that cable operators would be reluctant to 10 change the cards frequently due to the cost of 11 distributing new cards to their customers? 12 9685 MS de WILDE: There will undoubtedly 13 be challenging discussions in that regard. But it is 14 important to keep in mind that we do both share an 15 interest in shutting down pirates. Cable loses money 16 and we lose money. 17 9686 The difficulty that we are 18 confronting right now is that we are at that ugly point 19 in the technology conversion cycle where no one wants 20 to leap forward and fix it until it is a big fix; 21 namely, a transition from analog to digital. 22 9687 COMMISSIONER McKENDRY: In any event, 23 you would prefer the card or pod approach to security 24 integrated into the set-top box. 25 9688 MS de WILDE: It seems to me that it StenoTran 2085 1 is more flexible. 2 9689 COMMISSIONER McKENDRY: Thank you. 3 9690 Those are my questions, Madam Chair. 4 9691 THE CHAIRPERSON: Ms de Wilde, when 5 you say that you need a 2 percent kicker, I think what 6 you said was to get the regulator to pay attention to 7 digital employment and encryption. 8 9692 That criticism is of course levied at 9 former Commissioners. 10 9693 MS de WILDE: And former Commission 11 counsel. 12 9694 THE CHAIRPERSON: I don't think it 13 would be fair to say that in the last ten years some 14 attention has not been paid to the need for digital 15 deployment and sometimes attempts to regulate as though 16 it was actually occurring. 17 9695 MS de WILDE: In fact, the capital 18 expenditure provision that the Commission put into 19 place in the early 1990s was an inspired decision to do 20 precisely that. Unfortunately, technology did not 21 happen as fast as people would have hoped. 22 9696 When I say that we are prepared to 23 spend an additional 2 percent, it is because we see the 24 advantages of it. We need all of the support we can to 25 nudge the system along. StenoTran 2086 1 9697 THE CHAIRPERSON: Nudge rather than 2 kick? 3 9698 MS de WILDE: I think that depends on 4 where you are sitting. 5 9699 LA PRÉSIDENTE: Radio-Canada. I am 6 not as kind as my fellow commissioners. Vous êtes bien 7 entouré, Monsieur Bureau, et vous avez soulevé la 8 question de Radio-Canada, alors vous ne vous en 9 sauverez pas si facilement. 10 9700 Ce matin, et dans votre soumission 11 écrite, mais ce matin, à la page 9 on a soulevé que 12 vous avez dit que l'allocation de 50 pour cent allouée 13 aux productions destinées à la Société Radio-Canada 14 doit être revue. 15 9701 Je comprends, selon M. Roy, que la 16 base de cette révision se ferait selon l'argent dépensé 17 dans la production canadienne en considérant les 18 dépenses totales aux dépenses canadiennes, de 19 programmation canadienne? 20 9702 M. ROY: Ça pourrait être une 21 approche, oui, pour refléter... 22 9703 LA PRÉSIDENTE: Et ça, c'était votre 23 tiers/deux-tiers? 24 9704 M. ROY: C'est ça. 25 9705 LA PRÉSIDENTE: Et vous vous basiez StenoTran 2087 1 sur le Canada de langue française, sur SRC, ou... 2 9706 M. ROY: Non; l'ensemble du Canada. 3 9707 LA PRÉSIDENTE: Mettons à part la 4 question CBC, et examinons la question SRC au Québec. 5 9708 Vos collègues de TVA ont été beaucoup 6 plus précis et beaucoup plus aventuriers à nous donner 7 des suggestions de ce qu'il faut faire pour freiner 8 Radio-Canada. M. Lamarre n'a pas accepté ce mot-là, 9 mais nous avons eu des suggestions. Par exemple, vous 10 dites qu'ils attaquent le marché de la publicité 11 férocement. 12 9709 M. Lamarre se plaignait que la 13 publicité était vendue beaucoup trop basse, mais les 14 programmes étaient achetés sur enchères. Il avait, 15 lui, des suggestions très très précises pour 16 essentiellement couper un peu les ailes de la 17 concurrence de Radio-Canada. Je ne sais pas si vous 18 avez lu leurs suggestions, mais elles étaient très 19 précises. 20 9710 Par exemple, les droits à la 21 programmation ne pouvaient pas être achetés par 22 Radio-Canada à moins que le marché... j'espère que je 23 ne fais pas d'erreur ici, mais que le marché n'ait pas 24 essayé de miser sur l'achat de ces droits, et même que 25 Radio-Canada ne devrait pas faire de programmation si StenoTran 2088 1 le secteur privé voulait la faire elle-même. 2 9711 Considérant la pénétration du câble 3 au Québec et le fait que dans certains genres 4 d'émissions, dont TQS s'est retiré, il n'y a que deux 5 parties en langue française, conventionnelles, pour 6 ceux qui n'ont pas le câble, est-ce qu'à votre avis le 7 Conseil et les fonds et tous ceux qui s'occupent 8 d'essayer de, justement, allouer les sommes dont vous 9 parlez, devraient prendre en considération que si 10 Radio-Canada ne faisait plus certains genres de 11 programmation, il n'y aurait que TVA qui l'offrirait 12 aux gens sur ondes hertziennes? 13 9712 Les spécialisés, c'est 14 discrétionnaire et, en plus, la pénétration du câble 15 est basse, et ceux qui voudraient peut-être s'abonner 16 aux services SRD n'auront pas les services locaux. 17 Est-ce qu'on devrait mettre dans la soupe une approche 18 différente pour le Canada français à cause de ça? 19 9713 Madame Fortin, elle, dit que c'est 20 inévitable que Radio-Canada et TVA font se faire 21 concurrence. 22 9714 M. BUREAU: Je pense qu'en principe 23 il faut toujours s'assurer que les règles qui sont 24 envisagées soient adaptées aux deux marchés, et il peut 25 bien y avoir des règles différentes pour le marché StenoTran 2089 1 francophone par rapport au marché anglophone. 2 9715 Ceci étant dit, la raison, je pense, 3 pour laquelle TQS -- on parle seulement de ceux qui 4 peuvent rejoindre tout le monde par diffusion 5 hertzienne. La raison pour laquelle TQS s'est retirée 6 est qu'ils n'étaient pas capables de concurrencer 7 Radio-Canada eux non plus. Ils ont essayé d'en faire, 8 des émissions, comme celles que Radio-Canada faisait 9 dans le sport, dans d'autres catégories comme ça, des 10 séries et tout ça. Ils se sont retirés simplement 11 parce qu'ils n'étaient pas capables de supporter, si 12 vous voulez, la concurrence par rapport à Radio-Canada. 13 Ils entraient dans une ligue qui était beaucoup trop 14 élevée et trop riche pour eux. Si Radio-Canada n'était 15 pas là... 16 9716 S'il y avait un droit de premier 17 refus, si je comprends bien, une des suggestions... 18 s'il y avait un droit de premier refus sur certaines 19 catégories d'émissions en faveur de la télévision 20 conventionnelle et que la télévision conventionnelle 21 disait non, je ne le prends pas, pour n'importe quelle 22 raison, je pense bien qu'à ce moment-là, dans le but de 23 s'assurer que ceux qui ne sont pas abonnés au câble ou 24 qui ne sont pas abonnés à la télé en direct aient accès 25 à ce genre de programmation, Radio-Canada pourrait y StenoTran 2090 1 venir. 2 9717 Ce n'est peut-être pas une mauvaise 3 idée que d'essayer cette formule-là mais, vous savez, 4 avec la télé en direct, qui entre de façon assez 5 significative maintenant dans le marché francophone et 6 qui, au niveau du marché francophone est aussi 7 populaire que tout le reste du Canada anglais en termes 8 de nombre d'abonnés à la télé en direct, on va voir à 9 un moment donné que la pénétration limitée du câble, à 10 laquelle on a été habitué au Québec pendant un certain 11 nombre d'années, va probablement être complétée par une 12 pénétration des services de télé en direct, ou 13 peut-être par le nouveau service MMDS, dépendant de la 14 façon dont la mise en marché va être faite. 15 9718 Donc, ces choses-là vont venir 16 changer peut-être les données de base, les statistiques 17 de base dont on se sert pour dire qu'il reste une 18 grande partie de la population qui n'est pas servie. 19 9719 Même dans le cas où ça ne changerait 20 pas, il y a quand même deux autres joueurs. Il y a TVA 21 et TQS qui sont là, et ces deux autres joueurs-là, les 22 deux ont manifesté de l'intérêt pour le genre de 23 programmes que la société d'État achète, à ce qu'ils 24 considèrent, eux, un prix trop élevé, et je pense que 25 ce serait peut-être dans l'intérêt de tout le monde StenoTran 2091 1 s'il y avait cette espèce de formule de droit de 2 premier refus. Je ne sais pas qui serait l'arbitre 3 là-dedans, mais... 4 9720 LA PRÉSIDENTE: C'était une de leurs 5 suggestions, mais ils en avaient plusieurs très 6 précises dans ce genre-là. Mais vous, vous ne voyez 7 pas le résultat de ce qui se passe en ce moment au 8 Québec avec SRC plutôt qu'au Canada anglais avec le 9 CBC... vous ne voyez pas que c'est aussi un problème 10 qui est inhérent au Québec à cause de la petitesse du 11 marché, et qui devrait être considéré différemment? 12 9721 M. BUREAU: On dit toujours ça, et 13 c'est vrai. Alors, il faut toujours le considérer un 14 peu différemment. Ça ne veut pas dire que c'est 15 totalement différent. Il y a des nuances à apporter 16 là-dedans et on aura, j'espère, l'occasion d'en 17 discuter. 18 9722 Peut-être que M. Roy a quelque chose 19 à ajouter sur ce sujet-là en particulier. 20 9723 M. ROY: On a vu plus souvent la 21 Société Radio-Canada aller vers des formules offertes 22 par les diffuseurs conventionnels privés que l'inverse. 23 Donc, au lieu de développer ses propres formules et 24 donner une offre alternative en tant que société 25 publique, on est allé directement sur le terrain des StenoTran 2092 1 joueurs privés, et dans ce cas-là c'est vraiment la SRC 2 qui vient priver le public d'une sorte de programmation 3 que peut-être les privées n'avaient pas offerte jusqu'à 4 maintenant. 5 9724 LA PRÉSIDENTE: Je ne suis pas 6 certaine que j'ai bien compris votre position vis-à-vis 7 la production indépendante. Moi, j'ai la version 8 anglaise de votre soumission écrite devant moi, et à la 9 page 24 vous dites: 10 "...only independent production 11 companies should be given access 12 to Telefilm funds and to 13 assistance programs for Canadian 14 film and television productions, 15 for several reasons:" 16 9725 Which you outline. 17 9726 Did I hear you respond to 18 Commissioner Wilson that, with some safeguards, it 19 would possibly be acceptable? 20 9727 MS de WILDE: That is correct. In 21 fact, that position has evolved. 22 9728 THE CHAIRPERSON: And on page 8 -- en 23 français, vous dites: 24 "Tous les radiodiffuseurs 25 conventionnels devraient StenoTran 2093 1 consacrer un pourcentage de 2 leurs dépenses de programmation 3 à des émissions produites par 4 des entreprises non affiliées." 5 9729 Vous envisagez ici un pourcentage de 6 leurs dépenses de programmation qui irait, à ce 7 moment-là, à des compagnies indépendantes pour la 8 production d'émissions. 9 9730 Avez-vous envisagé un pourcentage 10 quelconque? 11 9731 Mme de WILDE: Non. On pense que 12 l'approche devrait être plutôt ad hoc. 13 9732 LA PRÉSIDENTE: Et ça, ce serait 14 seulement pour les radiodiffuseurs conventionnels, et 15 les services spécialisés... 16 9733 Mme de WILDE: On le fait déjà. 17 9734 LA PRÉSIDENTE: Est-ce que la 18 position ad hoc que le Conseil utilise maintenant est 19 satisfaisante dans le futur? 20 9735 Mme de WILDE: C'est exact. Oui. 21 9736 LA PRÉSIDENTE: Et on la 22 transporterait, à ce moment-là, au service 23 conventionnel. 24 9737 Mme de WILDE: Oui. 25 9738 LA PRÉSIDENTE: Maintenant, StenoTran 2094 1 CINAR/Nelvana nous a proposé une suggestion que j'ai, 2 moi, un peu de mal à comprendre, mais Mme Charest m'a 3 aidée un peu à la comprendre. J'aimerais savoir ce que 4 vous en pensez. 5 9739 Ils soutiennent, eux, que 6 l'investissement en capital par les diffuseurs de la 7 façon suivante est reconnue ou prévaut dans le marché, 8 et que, eux, ils devraient la transformer en règle. 9 Leur position serait la suivante: Que les diffuseurs 10 puissent obtenir une part de propriété dans une 11 production qui équivaut à 50 pour cent de la valeur de 12 leur investissement, en sus des droits de diffusion ou 13 de la licence qu'ils ont donnée, une fois qu'ils ont 14 recouvert entièrement leur investissement. 15 9740 Je comprends à ce moment-là qu'ils 16 pourraient être propriétaires à un niveau qui 17 équivaudrait à 50 pour cent de la valeur de leur 18 investissement en capital, au-delà ou en sus des droits 19 de diffusion ou la licence qu'ils ont donnée. 20 9741 M. BUREAU: Sur un budget de 21 production de 2 millions, si un diffuseur payait en 22 droits... investissait... 23 9742 LA PRÉSIDENTE: Oui. En capital, en 24 sus du droit de licence ou de droits de diffusion, 25 qu'il donnait, disons, 25 pour cent ou 20 pour cent, StenoTran 2095 1 mais en sus, une somme quelconque. 2 9743 M. BUREAU: À ce moment-là... 3 9744 LA PRÉSIDENTE: Qu'il pourrait 4 aboutir avec la propriété dans la production à un 5 niveau à 50 pour cent la valeur de cet investissement. 6 9745 M. BUREAU: Après remboursement, 7 avez-vous dit? 8 9746 LA PRÉSIDENTE: Une fois qu'ils ont 9 recouvert entièrement leur investissement. Ce n'est 10 pas une formule qui vous est familière. 11 9747 J'imagine que leur proposition vise à 12 encourager l'investissement des diffuseurs dans les 13 productions, sans qu'ils aient le contrôle de la 14 propriété. 15 9748 M. BUREAU: On aura certainement 16 l'occasion d'examiner la transcription... 17 9749 LA PRÉSIDENTE: C'est dans la 18 proposition de CINAR/Nelvana. 19 9750 M. BUREAU: ... et de faire des 20 commentaires au moment des commentaires écrits, Madame 21 Wylie. 22 9751 LA PRÉSIDENTE: Oui, parce que la 23 position de M. Hirsh et Mme Charest était que c'est 24 assez commun dans l'industrie et qu'eux voudraient, 25 comme incitatif à l'investissement en capital, que ce StenoTran 2096 1 soit reconnu comme une règle. 2 9752 Je vous donnerai la page exacte... 3 vous l'avez? 4 9753 M. BUREAU: On l'a déjà, la page. 5 C'est l'échange que vous avez eu avec Mme Charest qu'on 6 va avoir dans la transcription. 7 9754 LA PRÉSIDENTE: Oui, qui peut-être 8 aiderait, parce que c'était... Je suis charmée de voir 9 que vous non plus ne comprenez pas d'emblée. 10 9755 M. BUREAU: Mais, venant de 11 Mme Charest, ça a l'air trop beau pour être vrai. 12 9756 LA PRÉSIDENTE: Vous avez discuté 13 avec plus d'un de mes collègues de cette idée d'avoir 14 un groupe de travail qui examinerait les questions de 15 distribution et de déploiement de numérisation. 16 9757 Évidemment, quand vous avez écrit 17 votre soumission, vous ne saviez pas que le Conseil 18 allait, justement, ouvrir un processus quelconque pour 19 examiner les questions qui entourent la distribution. 20 Est-ce que vous envisageriez ce groupe de travail comme 21 faisant partie de cet exercice-là, dont maintenant vous 22 avez connaissance du fait que le Conseil se propose 23 d'avoir un processus quelconque? 24 9758 Est-ce que vous considérez que ça 25 fait partie intégrante des questions que nous allons StenoTran 2097 1 soulever dans cet examen structurel? 2 9759 Mme de WILDE: Non, pas vraiment. 3 J'ai pensé vraiment que ce serait plutôt un groupe de 4 travail, et pas un processus avec... 5 9760 LA PRÉSIDENTE: Non, mais est-ce que 6 ce groupe de travail là, ce ne serait pas normal qu'il 7 fasse partie de cet examen? Est-ce que ce n'est pas 8 une des questions... 9 9761 Mme de WILDE: Moi, je ne sais pas 10 exactement ce serait quoi les questions que le Conseil 11 va poser dans l'intérêt de cet exercice. 12 9762 LA PRÉSIDENTE: Mais vous avez vu 13 l'avis public du Conseil? 14 9763 Mme de WILDE: Oui. On avait en tête 15 plutôt les groupes de travail que le Conseil a menés 16 dans le cadre des télécommunications, où les questions 17 étaient plutôt techniques. 18 9764 LA PRÉSIDENTE: Comme le processus 19 CISC... 20 9765 Mme de WILDE: Oui. La partie 6? 21 Est-ce que c'est ce que... 22 9766 LA PRÉSIDENTE: Non. Le processus 23 CISC, C-I-S-C. Ça ne me vient pas en français en ce 24 moment. 25 9767 Mme de WILDE: C'est plutôt le StenoTran 2098 1 processus qui a touché le "number portability". C'est 2 celui-là qui m'a frappée le plus. 3 9768 LA PRÉSIDENTE: Oui. Le processus 4 CISC, c'est CRTC Interconnection Steering Committee. 5 9769 Mme de WILDE: C'est exactement ça. 6 9770 LA PRÉSIDENTE: Dans l'industrie, où 7 le Conseil... ça pourrait se produire en même temps, 8 mais pas nécessairement intégré à l'examen de la 9 structure. 10 9771 Mme de WILDE: C'est ça. 11 9772 LA PRÉSIDENTE: Maintenant, une 12 petite question sur la promotion. 13 9773 Vous suggérez qu'il y ait plus de 14 ressources dédiées ou dévouées à la promotion. Est-ce 15 que vous vous êtes penchés sur les suggestions qui ont 16 été faites que ça fasse partie des dépenses 17 canadiennes, à la programmation canadienne, ou si c'est 18 simplement un objectif que vous voulez... qu'il y ait 19 des incitatifs très clairs pour encourager la 20 promotion, que cet incitatif-là soit même financier? 21 9774 M. BUREAU: Je pense que notre 22 position serait que les coûts de promotion qui sont à 23 l'extérieur du service qui soit utilisé... 24 9775 LA PRÉSIDENTE: À des tierces 25 parties. StenoTran 2099 1 9776 M. BUREAU: À des tierces parties, ne 2 fassent pas partie de ce calcul-là dont vous parlez, à 3 moins... 4 9777 LA PRÉSIDENTE: Oui, qui est 5 contraire à certaines propositions. 6 9778 M. BUREAU: Oui. C'est pour ça qu'on 7 le spécifie. 8 9779 LA PRÉSIDENTE: Et vous, vous pensez 9 simplement que c'est le rôle des radiodiffuseurs de 10 faire la promotion de la programmation, et que les 11 incitatifs devraient être les impératifs du marché, 12 mais pas des incitatifs financiers, parce qu'il y a eu 13 beaucoup de propositions, que le Conseil devrait revoir 14 la définition de la publicité, inclure la promotion 15 dans les dépenses. 16 9780 MS de WILDE: We think that there are 17 some useful ideas on the table. The one that we are 18 alluding to right now is that it does not seem to make 19 a lot of sense to include what would be marketing 20 expenditures on, for example, billboards as Canadian 21 content expenditures. 22 9781 In contrast, if one were to change 23 the definition for some of the advertising to permit 24 the promotion of Canadian services by other Canadian 25 services, that would be a compelling way to enhance the StenoTran 2100 1 promotion of Canadian. 2 9782 If we were to find additional ways to 3 use the cross-channel avails, if we were to change the 4 treatment of the entertainment type of shows to put 5 them into a special category, those are powerful tools 6 that can start to create, especially in the English 7 language market, as Pierre always insists on 8 underlining, those are the types of tools that we need 9 to develop in English Canada. 10 9783 THE CHAIRPERSON: Now, I am going to 11 transgress Commissioner Wilson's rules and ask you a 12 question. 13 9784 On page 7, your Number 2 14 recommendation or concern, you suggest that: 15 "...the Commission should 16 regulate the wholesale rate for 17 specialty services since these 18 revenues underpin their licence 19 commitments for Canadian 20 programming." 21 9785 You are looking here at regulating 22 the amount of money that flows from cable to 23 specialties? 24 9786 M. BUREAU: Oui, tout à fait. 25 9787 Quand nous déposons une demande de StenoTran 2101 1 licence, il y a un plan d'affaires qui est joint, et 2 qui est basé sur des revenus, un tarif de gros. De ça 3 découlent les engagements en programmation canadienne. 4 9788 Quand le Conseil prend une décision 5 face aux différentes propositions de la licence qui 6 sont devant lui, nous considérons qu'il accepte, de ce 7 fait, s'il choisit une licence particulière, dans un 8 processus souvent compétitif, qu'il accepte de ce fait 9 la plan d'affaires et les engagements de contenu 10 canadien que ça sous-tendait. 11 9789 Donc, dans la dynamique actuelle que 12 nous rencontrons avec les câblo opérateurs, nous ne 13 voyons pas d'autres moyens que d'en arriver à établir 14 un plancher pour le tarif de gros sur une distribution 15 sur l'étage. 16 9790 LA PRÉSIDENTE: Et on a déjà ça 17 évidemment quand c'est une distribution sur le service 18 de base. Alors ce que vous entreverriez c'est le plan 19 d'affaires qui est basé sur le pourcentage de 20 pénétration? C'est assez difficile d'établir un taux 21 sans aussi réglementer le packaging. 22 1255 23 9791 M. BUREAU: Madame Wylie, on a, à 24 plusieurs reprises... et il y a plusieurs requérants 25 qui ont présenté devant le Conseil des demandes et qui StenoTran 2102 1 avaient une espèce d'échelle de tarifs qui était basée 2 sur la pénétration. À partir de ce moment-là, si le 3 Conseil juge que c'est raisonnable comme demande vu 4 l'ensemble du projet qui est mis devant lui, on devrait 5 s'attendre à ce qu'on ne soit pas forcés de négocier 6 ces choses-là, évidemment à la baisse, quand on arrive 7 avec le distributeur. 8 9792 À partir de ce moment-là, quand le 9 distributeur nous dit: "Non, vous n'aurez pas 40 10 cents, vous allez avoir 20 sous", puis on dit: "On a 11 des engagements qui font qu'on ne peut pas se permettre 12 de faire un service à ce prix-là" et qu'il dit: "Moi, 13 je m'en fous. Moi, je vous donne 20 sous, point, à la 14 ligne", alors nous autres on dit qu'il y a un forum où 15 n'importe qui peut venir pour dire: "On trouve que 16 c'est déraisonnable de demander un service qui va 17 coûter ce prix-là éventuellement." Ça peut être un des 18 éléments qui va être débattu à ce moment-là, comme on 19 va discuter de la programmation, comme on va discuter 20 de l'expertise de ceux qui font la demande et tout ça. 21 9793 Le Conseil a déjà eu à choisir, à la 22 dernière ronde de services spécialisés, entre des 23 demandes concurrentielles où il y avait un différentiel 24 au niveau du prix qui était considérable, entre deux 25 demandes en particulier dont je me souviens très bien, StenoTran 2103 1 et le Conseil en a choisi une; il a en fait choisi 2 celle dont le prix était le plus élevé. 3 9794 Je suis sûr que le Conseil, en 4 prenant cette décision-là, a pris la décision en se 5 disant: "C'est la meilleure demande, c'est la 6 meilleure chance qu'on a d'avoir un bon service", et il 7 n'a pas vu dans le différentiel de coût un élément qui 8 fasse que le Conseil se soit dit: "L'autre peut nous 9 offrir la même qualité mais à la moitié du prix. Il y 10 a quelque chose qui ne va pas. On va choisir l'autre." 11 9795 Alors tout ce qu'on dit, c'est que le 12 forum pour déterminer ce genre de choses là, ça devrait 13 être ici, et quand le Conseil a fini de prendre sa 14 décision sur les demandes que le Conseil entend, il 15 devrait dire: "Voici, on vous donne la licence, et ça 16 implique que le prix de gros va être à tel prix." 17 9796 THE CHAIRPERSON: We will have an 18 opportunity to discuss that with Commissioner Wilson 19 when we do have our process, but it is not a new 20 concept, it is just that the Commission hasn't retained 21 it as a requirement. 22 9797 MR. BUREAU: We have not yet 23 suggested that cable rates should be regulated on a 24 tier. 25 9798 THE CHAIRPERSON: Not yet. StenoTran 2104 1 9799 MR. BUREAU: What did I say? My 2 English is very poor. 3 9800 THE CHAIRPERSON: Thank you. 4 9801 Counsel. 5 9802 Me BLAIS: Je ne veux pas vous 6 retenir trop, trop de votre déjeuner, mais j'ai deux 7 petites questions à vous poser, et c'est vraiment pour 8 réagir à des propositions mises de l'avant par d'autres 9 parties. 10 9803 Premièrement, l'ACR propose, à 11 l'annexe 1, à la page 6, une proposition... j'ai le 12 texte ici en anglais, si vous ne l'avez pas devant 13 vous. 14 "However, the CAB has proposed 15 two incentives that will ensure 16 the greater presence and 17 promotion of theatrical feature 18 films" 19 et le deuxième, c'est: 20 "an exclusion of any promotion 21 of Canadian feature films from 22 the definition of advertising 23 content irrespective of whether 24 the broadcaster carries it." (As 25 read) StenoTran 2105 1 9804 Je me demandais si vous aviez des 2 commentaires à faire sur cette proposition-là. 3 9805 MS de WILDE: We think that both of 4 those are very good ideas. 5 9806 MR. BLAIS: You know, I didn't 6 mention the 200 per cent credit. I was asking more for 7 your reaction on the second, but I take note that you 8 also agree with the first proposal. 9 9807 Monsieur Bureau, je sais que vous 10 aviez été impliqué, je pense que c'était à la fin des 11 années quatre-vingt, suite à la directive en Europe sur 12 la télévision sans frontières et les quotas en Europe 13 relativement aux coproductions officielles, et je 14 voulais savoir si vous aviez une réaction à la 15 proposition de l'APFTQ à l'effet qu'il y a un crédit de 16 150 pour cent pour les coproductions majoritairement 17 canadiennes, les coproductions officielles, évidemment. 18 9808 Je me demandais qu'en est-il de la 19 notion du retour d'ascenseur entre les coproductions 20 majoritaires et les coproductions minoritaires? Est-ce 21 que ça pourrait débalancer le système de coproduction? 22 9809 M. BUREAU: C'est très complexe. 23 Toute cette discussion-là avec nos partenaires 24 étrangers est extrêmement complexe. Il y a toutes 25 sortes de choses qui entrent en ligne de compte, y StenoTran 2106 1 inclus la politique. 2 9810 Je pense qu'il y a certainement 3 avantage à encourager les coproductions dans lesquelles 4 on va être majoritaires, et ça peut prendre la forme 5 qui est suggérée par l'APFTQ, mais je n'irai pas 6 au-delà de ça dans mes commentaires parce que 7 justement, à l'heure actuelle, il y a toutes sortes 8 de... peut-être pas de problèmes, mais certainement de 9 questions qui sont soulevées au niveau de l'application 10 des traités à l'heure actuelle relativement à la 11 portion minoritaire ou la portion majoritaire de la 12 coproduction, et ça fait l'objet de débat par des gens 13 qui sont bien mieux qualifiés que moi à l'heure 14 actuelle. 15 9811 Me BLAIS: Néanmoins, certains ont 16 proposé que les traités de coproduction se trouvent 17 être un engin pour aider l'exportation de produits 18 canadiens, et je vous inviterais alors, dans les 19 commentaires du mois de novembre, si vous pouviez 20 peut-être nous aider dans ce sens en matière de 21 coproduction officielle. 22 9812 M. BUREAU: On va certainement 23 essayer. 24 9813 Vous avez parlé de novembre? 25 9814 Me BLAIS: Oui. C'est ça, au mois de StenoTran 2107 1 novembre. 2 9815 M. BUREAU: Oui. 3 9816 Me BLAIS: Merci bien. 4 9817 LA PRÉSIDENTE: Nous vous remercions, 5 mesdames, messieurs. 6 9818 Nous allons maintenant prendre une 7 pause pour le déjeuner et nous reprendrons à 2 h 00. 8 We will be back at 2:00. 9 --- Recess at / Suspension à 1300 10 --- Reprise à / Upon resuming at 1402 11 9819 LA PRÉSIDENTE: Bienvenue et bonjour. 12 9820 Avant de débuter, je voudrais avertir 13 tout le monde que ce soir nous allons ajourner à 6 h 00 14 ou à peu près, dépendant de comment les choses se 15 déroulent. C'est un peu difficile en ce moment de 16 déterminer exactement combien de parties nous pourrons 17 entendre; nous aurons une meilleure idée peut-être à la 18 pause. 19 9821 We will be adjourning at 6:00 or 20 approximately 6:00 tonight; depending on where we are 21 at, it might be slightly before. It is difficult to 22 say how many parties we will be hearing, but we should 23 have a better idea by the break. 24 9822 Madam Secretary. 25 9823 Mme BÉNARD: Merci, Madame la StenoTran 2108 1 Présidente. 2 9824 La prochaine présentation sera faite 3 par Le Groupe Coscient iInc. J'inviterais M. Crevier à 4 nous présenter ses collègues. 5 9825 M. CREVIER: Merci. 6 PRÉSENTATION / PRESENTATION 7 9826 M. CREVIER: Madame la 8 Vice-Présidente, Mesdames et Messieurs les Conseillers, 9 mon nom est Guy Crevier. Je suis accompagné 10 aujourd'hui de M. Laurent Gaudreau, qui est à ma 11 droite, qui est vice-président du conseil et fondateur 12 de Coscient; à sa droite, Mme Marie-Christine Dufour, 13 vice-présidente, Affaires publiques, et M. Michel 14 Houle, consultant. 15 9827 C'est la première fois, Madame la 16 Vice-Présidente, que j'ai le plaisir de me présenter 17 devant le Conseil en tant que chef de la direction du 18 Groupe Coscient, qui est, comme vous le savez, le plus 19 important producteur indépendant de films et 20 d'émissions de télévision au Québec et le second en 21 importance au Canada. Je me fais un plaisir ici de 22 vous signaler qu'au grand gala francophone de la 23 télévision, dimanche dernier, Le Groupe Coscient a 24 amassé un record de 18 Gémeaux. 25 9828 Au cours des 20 dernières années j'ai StenoTran 2109 1 oeuvré dans les domaines de la diffusion, de la 2 production, de la distribution et des nouveaux médias. 3 L'exercice de ma profession m'a amené à entrer en 4 contact avec une foule d'intervenants à travers le 5 monde. À chaque reprise, j'ai constaté combien le 6 système canadien de radiodiffusion fait l'envie des 7 observateurs étrangers. C'est un success story 8 d'autant plus remarquable que la dualité linguistique 9 nous a obligés, en pratique, à construire deux systèmes 10 de radiodiffusion canadiens, l'un de langue anglaise et 11 l'autre de langue française. C'est un success story 12 d'autant plus unique que nous avons dû le créer et le 13 développer à proximité du géant américain, c'est-à-dire 14 de la plus puissante industrie culturelle à l'échelle 15 planétaire. 16 9829 La force du système de radiodiffusion 17 de langue française réside dans la popularité 18 exceptionnelle de ses émissions sur le marché 19 domestique. Année après année, 90 pour cent des 20 émissions les plus populaires à la télévision de langue 21 française sont canadiennes. Et, en dépit de l'ajout 22 d'un très grand nombre de services de programmation de 23 langue anglaise, canadiens et américains, les 24 francophones du Québec regardent la télévision de 25 langue française dans une proportion plus grande StenoTran 2110 1 aujourd'hui qu'il y a 15 ans. 2 9830 Les émissions canadiennes de langue 3 anglaise, pour leur part, connaissent des succès 4 exceptionnels sur les marchés étrangers au point que le 5 Canada est devenu un des plus importants exportateurs 6 d'émissions de télévision après les États-Unis. 7 9831 Je suis convaincu que ces deux 8 systèmes peuvent apprendre beaucoup l'un de l'autre et 9 se prêter mutuellement assistance. 10 9832 Les producteurs et les diffuseurs 11 d'émissions canadiennes de langue française doivent 12 apprendre à exporter davantage leurs produits, de façon 13 à pouvoir en faciliter le financement, à les rendre 14 plus attrayants, plus compétitifs et plus profitables. 15 9833 Malheureusement, au Canada anglais, 16 l'objectif partagé par tous de rejoindre un plus grand 17 auditoire avec le contenu canadien n'a pas encore été 18 atteint. 19 9834 J'ai fait allusion au début de ma 20 présentation à la qualité et à la pertinence du système 21 canadien. Il faut toutefois admettre qu'il s'agit d'un 22 système qui exige de la part des contribuables 23 canadiens un effort considérable. Je pourrais citer à 24 titre d'exemple le coût de la télévision publique, les 25 crédits d'impôts, les fonds de financement des StenoTran 2111 1 produits. 2 9835 Pour que cet effort des contribuables 3 soit efficace et justifié, il faut que les entreprises 4 de diffusion canadiennes participent également à cet 5 effet. En particulier, il faut que les diffuseurs 6 conventionnels de langue anglaise, comme le font déjà 7 les diffuseurs conventionnels privés de langue 8 française et les télévisions spécialisées des deux 9 langues, consacrent une plus grande part de leurs 10 revenus et de leurs dépenses de programmation et de 11 promotion aux émissions canadiennes pour que celles-ci 12 deviennent plus populaires, plus compétitives sur le 13 marché domestique comme sur le marché international et 14 réussissent à rejoindre une plus grande part de 15 l'auditoire. 16 9836 Il faut savoir miser sur nos forces 17 respectives mais aussi tirer des leçons de l'expérience 18 de l'autre, pour corriger nos faiblesses. Si nous 19 réussissons à relever ce défi, la réussite du système 20 canadien sera encore plus éclatante. 21 9837 M. GAUDREAU: On peut dire que le 22 contenu canadien est vraiment la pierre angulaire de 23 notre système de radiodiffusion. C'est ce qui fait 24 qu'il est unique. C'est ce qui fait qu'il n'est pas 25 une simple extension du système américain. C'est ce StenoTran 2112 1 qui fait qu'il contribue à l'affirmation de notre 2 identité culturelle. Il n'y a donc aucun doute dans 3 mon esprit qu'il faut favoriser une haute teneur de 4 contenu canadien. 5 9838 Mais la quantité n'est pas le seul 6 facteur qui compte. Dans un environnement de plus en 7 plus concurrentiel, il faut aussi favoriser la qualité 8 et la compétitivité des émissions canadiennes, leur 9 capacité de séduire les auditoires d'ici et d'ailleurs, 10 car c'est ainsi qu'on pourra accroître leur 11 rentabilité, stimuler leur exportation et contribuer à 12 résoudre le problème de leur financement. 13 9839 Le défi que nous avons collectivement 14 à relever est vraiment de produire de plus en plus 15 d'émissions qui ne s'adressent pas uniquement aux 16 auditoires domestiques mais qui peuvent aussi rayonner 17 à travers le monde. 18 9840 C'est d'ailleurs dans cette direction 19 qu'entend résolument s'orienter Le Groupe Coscient, qui 20 n'en est pas à ses premières armes, d'ailleurs, 21 puisqu'il a déjà réussi à exporter un magazine 22 scientifique comme Omni Science dans 117 pays et à 23 faire des percées intéressantes avec des séries 24 dramatiques comme "Scoop" et "Omertà" ainsi que des 25 séries d'animation comme "Bob Morane". StenoTran 2113 1 9841 Du côté de la télévision de langue 2 anglaise, le défi se situe vraiment du côté domestique. 3 Il faut assurer une présence plus régulière des séries 4 dramatiques et pour enfants canadiennes; là aussi, le 5 défi fondamental est de rendre ces émissions plus 6 rentables pour les producteurs et les diffuseurs 7 canadiens, en faisant en sorte qu'elles soient plus 8 attrayantes pour les auditoires d'ici, mieux placées 9 dans les grilles horaires, promues avec plus de moyens 10 et d'intensité. 11 9842 Le nouvel environnement réglementaire 12 devrait donc avoir pour objectifs de favoriser à la 13 fois la disponibilité, la qualité, la compétitivité et 14 la rentabilité des émissions canadiennes. Il doit 15 reposer sur une vision industrielle globale, sans pour 16 autant négliger, bien sûr, les objectifs sociaux et 17 culturels de la loi. Cet environnement réglementaire 18 doit aussi avoir la souplesse nécessaire pour 19 permettre, voire encourager le risque, pour récompenser 20 le succès et pour relever le défi international de 21 l'exportation. 22 9843 M. CREVIER: La réussite du système 23 de radiodiffusion canadien repose en grande partie sur 24 le modèle assez unique que nous avons développé, un 25 modèle qui permet aux différents partenaires du StenoTran 2114 1 système -- producteurs/distributeurs indépendants, 2 télédiffuseurs conventionnels et services 3 spécialisés -- d'apporter une valeur ajoutée aux 4 produits. 5 9844 Nous croyons que cette structure à 6 trois piliers a contribué à créer un système de 7 radiodiffusion dynamique, compétitif et innovateur, et 8 que le Conseil devrait avoir à coeur d'assurer la 9 pérennité de ce modèle industriel, qui permet à toutes 10 les composantes du système de se développer, de 11 disposer d'un espace de croissance et d'ajouter de la 12 valeur. 13 9845 Nous ne sommes pas opposés à la 14 création de groupes intégrés, au développement 15 d'alliances stratégiques et de partenariats entre ces 16 trois composantes. Au contraire, nous avons suggéré 17 dans notre mémoire diverses mesures qui favoriseraient 18 l'établissement de tels partenariats, car nous croyons 19 qu'ils sont nécessaires pour renforcer le système 20 canadien de radiodiffusion et pour relever le défi de 21 la compétition sur la scène internationale. La 22 relation qui s'est développée entre Télé-Système et Le 23 Groupe Coscient en est d'ailleurs un bel exemple. 24 9846 Ce que nous disons, c'est que des 25 balises doivent encadrer ce processus pour éviter StenoTran 2115 1 d'accorder à l'un de ces trois piliers une position de 2 dominance telle que la dynamique globale, la 3 productivité et la compétitivité du système en soient 4 négativement affectées. C'est pourquoi nous suggérons 5 au Conseil d'adopter une politique d'accès des 6 producteurs indépendants au système de la 7 radiodiffusion canadienne qui assure qu'une fenêtre 8 leur soit toujours ouverte, comme la Loi sur la 9 radiodiffusion l'exige. 10 9847 À cet égard, le moyen qui nous 11 semblerait le plus approprié est d'assujettir tous les 12 télédiffuseurs à l'obligation de consacrer un 13 pourcentage de leurs dépenses de programmation 14 canadienne à l'acquisition d'émissions produites par 15 des entreprises non affiliées. 16 9848 En résumé, nous croyons que le 17 contenu canadien est la pierre angulaire du système 18 actuel. C'est en réalisant des émissions canadiennes 19 plus rentables, de meilleure qualité et plus 20 compétitives sur la scène nationale et internationale 21 qu'on créera de la richesse et qu'on consolidera le 22 système de la radiodiffusion canadienne. 23 9849 Nous croyons également que la force 24 du système repose sur ses trois composantes: les 25 producteurs/distributeurs indépendants, les StenoTran 2116 1 télédiffuseurs conventionnels, la télévision 2 spécialisée et payante, et que l'encadrement 3 réglementaire doit assurer à chacune un espace de 4 créativité et de croissance, tout en encourageant le 5 développement de partenariats et d'alliances 6 stratégiques entre elles. 7 9850 Enfin, nous croyons que le Conseil 8 doit privilégier une vision industrielle globale qui 9 permette au système de la radiodiffusion canadienne de 10 relever le défi de la mondialisation, d'exporter son 11 expertise et ses produits sur les marchés 12 internationaux. 13 9851 Madame la Vice-Présidente, Madame et 14 Messieurs les Conseillers, je vous remercie de votre 15 attention. 16 9852 LA PRÉSIDENTE: Merci, 17 Monsieur Crevier et Monsieur Gaudreau. 18 9853 Votre soumission ou votre bref écrit 19 est assez complet et intéressant. Je vais poser des 20 questions assez spécifiques sur vos soumissions. Donc 21 nous vous félicitons de l'apport à notre processus, qui 22 semble avoir été bien pensé et vous semblez y avoir mis 23 beaucoup de travail. 24 9854 Il y a quatre secteurs où j'ai des 25 questions. Je voudrais poser des question sur vos StenoTran 2117 1 propos sur la concentration, sur l'intégration 2 verticale et l'accès aux fonds par les télédiffuseurs 3 et sur la question de ce que vous proposez comme 4 dépenses à la programmation canadienne, comme exigences 5 pour les télévisions, et vos propos sur Radio-Canada. 6 Pauvre Radio-Canada, on en a parlé beaucoup ce matin et 7 avant-hier aussi. 8 9855 Maintenant, au niveau de la 9 concentration, vous proposez à votre recommandation 9 10 qu'on s'assure que les entreprises privées soient 11 fortes et se développent dans le secteur de la 12 télévision conventionnelle et dans le secteur de la 13 télévision spécialisée et payante, mais que ces deux 14 secteurs demeurent relativement autonomes et en 15 concurrence entre eux, surtout au Canada français. 16 9856 Comment réconcilier ces deux 17 objectifs, de s'assurer que nous ayons des entreprises 18 fortes, incluant des entreprises conventionnelles, mais 19 de garder les secteurs, si je comprends bien, de la 20 télévision conventionnelle et de la télévision 21 spécialisée et payante comme étant autonomes et 22 concurrentiels. 23 9857 Alors comment va-t-on encourager des 24 entreprises fortes qui peuvent se développer et 25 participer davantage dan la programmation sans accepter StenoTran 2118 1 qu'il y aura cette intégration que moi, je considère 2 comme horizontale, dans l'étroitesse du marché 3 francophone? 4 9858 M. CREVIER: Dans le fond, je 5 pourrais vous répondre en plusieurs volets, mais ce qui 6 me frappe beaucoup, moi, c'est qu'on fait face, comme 7 tout le monde, à une globalisation, et je ne crois pas 8 que la concentration soit nécessairement une mesure de 9 développement. Je pense qu'on voit souvent la 10 concentration comme une mesure défensive. 11 9859 Je vais vous donner peut-être un peu 12 l'exemple du groupe à qui j'appartiens, Coscient. Je 13 viens de Télé-Système et j'ai encore des racines chez 14 Télé-Système. Télé-Système est une entreprise qui a 15 participé beaucoup à un grand nombre d'alliances 16 stratégiques mais qui n'est pas majoritaire dans aucun 17 de ces investissements. 18 9860 Ce que nous suggérons, c'est qu'on 19 favorise des alliances stratégiques et que ces 20 alliances stratégiques soient multiples mais qu'elles 21 soient stratégiques, qu'elles soient reliées à des 22 possibilités de conquête de marchés, d'exportation, 23 d'exportation de notre savoir-faire, mais non pas à un 24 simple phénomène de concentration où, en bout de ligne, 25 on se retrouve dans un environnement où il n'y a plus StenoTran 2119 1 de concurrence. Absence de concurrence, pour moi, ça 2 veut dire également absence au niveau de la qualité. 3 9861 Il faut peut-être se rappeler et 4 retourne un petit peu en arrière et retourner aux 5 années soixante-dix; je suis convaincu que dans tous 6 les différents mémoires qui ont été déposés à ce 7 moment-là auprès des organismes réglementaires et des 8 différentes commissions qui ont eu lieu au début des 9 années soixante-dix... on doit se rappeler qu'au 10 Canada, dans le début des années soixante-dix, il y 11 avait très peu de joueurs et qu'on a créé un système et 12 on a favorisé un système dans lequel il y avait 13 effectivement plusieurs niveaux de joueurs, des 14 producteurs, des diffuseurs et des distributeurs, de 15 façon à enrichir l'offre et les produits, et je crois 16 qu'on a bien atteint ça. 17 9862 Ce serait dommage maintenant que, 18 face à un marché qui est un marché global, notre 19 premier réflexe soit de permettre une concentration qui 20 n'est axée que sur des mesures défensives. 21 9863 LA PRÉSIDENTE: Alors est-ce que vous 22 entrevoyez comme étant une intégration horizontale ou 23 une concentration des investissements minoritaires 24 entre les télévisions conventionnelles et les 25 spécialisées? Votre proposition, à la page 30 ou 31, StenoTran 2120 1 la recommandation 9, on parle de favoriser le 2 développement de réseaux ou de groupes de propriétés de 3 télévisions conventionnelles privées forts, mais un 4 système qui découragerait -- à la page 31, juste avant 5 le paragraphe 89 -- une trop grande intégration 6 télévision conventionnelle/télévision spécialisée. 7 9864 Évidemment, comme producteur, je ne 8 pense pas que vous soyez charmé de l'idée d'intégration 9 verticale entre les producteurs et les télédiffuseurs 10 non plus. 11 9865 Donc, au Canada français en 12 particulier, dans un marché étroit, si on ne permet pas 13 cette concentration ou cette intégration horizontale et 14 verticale, comment peut-on favoriser un système de 15 télévision ou une industrie de la télévision plus 16 forte? 17 9866 M. GAUDREAU: Vous avez raison. 18 Évidemment, le système dans lequel on évolue au Québec, 19 c'est un système où la notion de complémentarité est 20 bien structurée, bien organisée, et évidemment les 21 joueurs veulent de plus en plus se donner de la 22 dimension et travailler en association avec les autres. 23 Mais je pense que les prises de participation 24 minoritaires ne constituent pas des intégrations. 25 C'est la même chose que, dans certains cas, les StenoTran 2121 1 diffuseurs peuvent devenir des investisseurs dans le 2 produit. 3 9867 Cette relation d'affaires là peut 4 s'établir à plusieurs niveaux sans pour autant que ce 5 soit vraiment des propriétés à part entière structurées 6 à travers un diffuseur conventionnel, diffuseur 7 spécialisé et producteur. 8 9868 LA PRÉSIDENTE: Qu'est-ce que vous 9 considérez comme une position minoritaire ou un 10 investissement minoritaire acceptable, pour ne pas 11 léser votre proposition de ne pas encourager une 12 intégration trop poussée? Un des problèmes, à votre 13 avis, serait que le contenu canadien serait recyclé. 14 9869 Mais, avant de répondre à cette 15 deuxième partie, est-ce que vous avez pensé à ce que 16 vous considérez comme un investissement qui ne 17 dépasserait pas la philosophie que vous proposez quand 18 vous dites "minoritaire"? 19 9870 M. CREVIER: Trente-trois pour cent. 20 9871 LA PRÉSIDENTE: Trente-trois pour 21 cent, avec rien d'autre qui donnerait un pouvoir 22 spécial. À ce moment-là, ce ne serait pas pour vous de 23 l'intégration horizontale. 24 9872 M. CREVIER: Exact. 25 9873 LA PRÉSIDENTE: Nous allons revenir à StenoTran 2122 1 l'intégration que moi, j'appelle verticale entre 2 producteurs et télédiffuseurs et tout ce qui en 3 découle. Évidemment, on ne parlera pas aujourd'hui 4 d'intégration entre télédiffuseurs et distributeurs, ce 5 sera pour une autre journée. 6 9874 Maintenant, vous avez proposé, à la 7 page 31, au paragraphe 89, que votre recommandation 8 était basée en partie sur le fait que des entreprises 9 intégrées et en position dominante dans le marché 10 recycleraient constamment et auraient un incitatif pour 11 ou une tentation de recycler le même contenu canadien. 12 9875 Est-ce que c'est le seul résultat 13 nocif d'une intégration horizontale trop poussée qui 14 vous porte à faire cette recommandation? 15 9876 M. CREVIER: Non, je ne crois pas. 16 Je crois que, essentiellement, notre système est basé 17 sur un rapport de force actuellement, un rapport de 18 négociation, le diffuseur, bien entendu, étant celui 19 qui décide de l'acquisition d'un produit mais qui, en 20 décidant de l'acquisition d'un produit, déclenche une 21 série de financements du produit, déclenche une série 22 d'éléments qui favorisent le financement du produit. 23 9877 Je pense qu'il faut être très 24 prudents dans cet environnement-là pour ne pas faire en 25 sorte qu'on ne vienne pas qu'à bâtir un système qui StenoTran 2123 1 soit axé sur une expression qui est le self-serving, et 2 non pas sur la pertinence, la qualité et la nécessité 3 d'un produit. 4 9878 LA PRÉSIDENTE: Alors ce serait nocif 5 dans le sens que ça empêche une négociation normale 6 dans le marché de se dérouler, et ça découle un peu 7 aussi sur vos positions vis-à-vis Radio-Canada, je 8 suppose... ou celles qu'on a entendues, mais on peut en 9 reparler plus tard... 10 9879 M. CREVIER: On peut en reparler. 11 9880 LA PRÉSIDENTE: ... où il y a une 12 position trop dominante, surtout dans un marché étroit 13 où les pistes sont faussées à cause du pouvoir de 14 négociation d'une partie ou de l'autre. 15 9881 Vous avez aussi relevé, à la page 43, 16 qui est votre recommandation 15, qu'il devrait 17 continuer à y avoir une diversité de propriétaires de 18 stations hertziennes dans un même marché tout en 19 favorisant la consolidation des groupes de propriétés à 20 l'échelle régionale et nationale. 21 9882 Au Canada français en particulier, 22 qu'est-ce que ça voudrait dire de s'assurer que dans 23 chaque marché il y a une diversité de propriétaires de 24 stations hertziennes mais favoriser la consolidation à 25 l'échelle régionale? Comment est-ce que vous StenoTran 2124 1 entrevoyez le résultat de cette recommandation pour le 2 Canada français? 3 9883 J'ai remarqué que vous avez... 4 quelquefois, c'est un peu difficile à décortiquer. 5 Quelquefois vous vous adressez aux deux marchés, 6 anglophone et francophone, et d'autres fois seulement 7 au francophone. Vous n'avez pas d'objection à ce que 8 moi, je précise dans mes questions, parce que je pense 9 que nous sommes d'accord qu'il y a des circonstances 10 qui sont assez différentes. 11 9884 Vous oeuvrez beaucoup plus dans le 12 marché francophone, ou au Québec. 13 9885 M. CREVIER: Nous avons procédé il y 14 a presque deux ans de ça à l'acquisition d'une 15 compagnie de distribution qui s'appelle Motion, qui 16 nous a ouvert les portes de façon considérable sur les 17 marchés anglophones et les marchés américains. Quand 18 je faisais allusion aux prix Gémeaux tantôt, je peux 19 vous dire qu'on est en nomination également pour deux 20 prix Gemini qu'on produit ou vend pour la presque 21 totalité des réseaux anglophones. 22 9886 LA PRÉSIDENTE: Mais il ne serait pas 23 injuste de vous considérer comme le producteur majeur 24 au Canada français... 25 9887 M. CREVIER: Absolument. StenoTran 2125 1 9888 LA PRÉSIDENTE: ... dans le passé, et 2 caetera. Ça ne veut pas dire que... 3 9889 M. CREVIER: Vous avez entièrement 4 raison. 5 9890 LA PRÉSIDENTE: ... vous n'oeuvrez 6 pas dans les deux domaines. 7 9891 Donc, puisqu'il s'agit ici d'une 8 audience de politique et d'essayer d'avoir de l'aide 9 des gens, vous allez peut-être trouver que, puisque 10 vous êtes là, je vais vous poser des questions sur le 11 marché francophones surtout. Nous avons bien des 12 opportunités du côté anglophone et moins du côté 13 francophone. 14 9892 Alors maintenant, pour revenir à ma 15 question, comment entrevoyez-vous cette 16 recommandation-là en pratique au Québec? 17 9893 M. CREVIER: Si vous me permettez, je 18 vais laisser M. Gaudreau répondre parce que moi, la 19 dernière fois que j'étais assis devant le Conseil, 20 c'était pour favoriser la fusion entre TVA et 21 Quatre-Saisons. Je suis bien embêté avec ce que vous 22 venez de poser. 23 9894 LA PRÉSIDENTE: Même quand on est un 24 homme on peut toujours... 25 9895 M. CREVIER: Changer d'idée. StenoTran 2126 1 9896 LA PRÉSIDENTE: ... changer d'idée. 2 9897 M. CREVIER: Vous êtes bien gentille. 3 Je vais profiter de votre conseil. 4 9898 LA PRÉSIDENTE: Les hommes apprennent 5 des trucs qui fonctionnent dans la vie. 6 9899 Allez-y, Monsieur Gaudreau. 7 9900 M. GAUDREAU: Écoutez, effectivement, 8 quand on s'est présentés ici la dernière fois, c'était 9 vraiment pour défendre le principe de la multiplicité 10 des canaux hertziens au Québec, et je pense 11 qu'aujourd'hui on peut constater effectivement qu'il y 12 avait quand même des acheteurs potentiels pour 13 Télévision Quatre-Saisons et que cette chaîne-là 14 pouvait trouver un avenir au Québec. 15 9901 Fondamentalement, la situation de 16 monopole dans un marché fermé comme le Québec donnerait 17 une situation privilégiée à Télé-Métropole si c'était 18 Télé-Métropole, mais au diffuseur privé, mais je pense 19 qu'effectivement il peut y avoir une extension à 20 travers les régions. Au Québec, il y a quand même des 21 diffuseurs régionaux, et je pense qu'il peut y avoir un 22 lien, un rapprochement qui peut se faire entre certains 23 de ces diffuseurs régionaux -- ça existe déjà du côté 24 de Télévision Quatre-Saisons -- avec certaines stations 25 régionales. Je pense qu'aussi il peut y avoir une StenoTran 2127 1 extension du côté de certains services spécialisés. 2 9902 M. CREVIER: Je veux juste vous 3 rappeler que nous étions très favorables aussi -- et 4 nous l'avons appuyé et nous sommes prêts toujours à 5 l'appuyer -- au fait que le réseau TVA devienne réseau 6 national. C'est quelque chose de très bien pour le 7 Québec. 8 9903 Je vous dirais que le principal 9 problème au Québec actuellement, que ce soit pour les 10 diffuseurs ou les producteurs et les distributeurs, 11 c'est de sortir de leur marché. 12 9904 LA PRÉSIDENTE: De sortir... 13 9905 M. CREVIER: De sortir du marché 14 domestique, d'exporter le savoir-faire. 15 9906 LA PRÉSIDENTE: Et c'est là que vous 16 voyez régional et national, parce que vous 17 reconnaissez, évidemment, que le marché est très 18 étroit. 19 9907 J'allais vous poser des question sur 20 Radio-Canada à la fin, mais je vais vous les poser 21 maintenant, parce qu'à mon avis -- mais je veux savoir 22 ce que vous en pensez -- c'est relié, de fait. Nous 23 avons Radio-Canada qui s'est présentée devant nous et 24 qui a conclu qu'au Québec il n'y a pas grand choix, 25 Radio-Canada va continuer à être en concurrence au StenoTran 2128 1 niveau de la télévision. 2 9908 Évidemment, ce n'est pas une opinion 3 partagée par les télédiffuseurs québécois 4 nécessairement et, par exemple, je vois que vous aussi, 5 à la page 45, au paragraphe 142, vous dites que le 50 6 pour cent réservé à Radio-Canada au fonds devrait être 7 revu à la baisse pour refléter mieux la réalité. 8 9909 Nous avons entendu différentes 9 suggestions sur quel serait le point de référence pour 10 le baisser. Quel est le vôtre? 11 9910 M. CREVIER: Je vais sortir un peu du 12 cadre de la présentation pour tenter d'y répondre. 13 9911 Moi, je dois dire au départ que j'ai 14 beaucoup de respect pour la Société Radio-Canada et 15 pour la contribution... 16 9912 LA PRÉSIDENTE: Mais j'en suis sûre. 17 9913 M. CREVIER: ... que Radio-Canada a 18 faite au système. 19 9914 LA PRÉSIDENTE: Oui, oui. 20 9915 M. CREVIER: Je veux dire, c'est 21 vraiment un système de qualité. 22 9916 LA PRÉSIDENTE: Ce sont les problèmes 23 qui sont entrevus maintenant... 24 9917 M. CREVIER: Absolument. 25 9918 LA PRÉSIDENTE: .. que nous voulons StenoTran 2129 1 discuter. 2 9919 M. CREVIER: Le problème qu'on 3 rencontre avec la société d'État, je pense que c'est 4 une question qui est reliée beaucoup à son financement. 5 La société d'État a dû, dans les dernières années, 6 compter énormément sur ce que j'appelle les revenus 7 publicitaires et a adopté, par le fait même, une 8 orientation qui est davantage commerciale. 9 9920 Dans un contexte où il y a un débat 10 de fond au Canada sur le rôle de la télévision publique 11 et qu'on convient de financer de façon adéquate 12 Radio-Canada, c'est dans ce contexte-là que moi, je 13 voyais que Radio-Canada pourrait éventuellement se voir 14 restreindre son accès à ces fonds-là puisque, d'un 15 autre côté, elle pourrait compter sur un financement 16 plus stable. 17 9921 Maintenant, quel est le pourcentage, 18 quel est le barème, comment le calculer, je pense que 19 ce débat-là n'est pas tellement un débat qui est du 20 ressort de l'entreprise privée mais davantage un débat 21 qui est un débat de population. Quel type de société 22 d'État voulons-nous avoir? Quel est le coût de cette 23 société d'État là? Et est-ce qu'on peut financer 24 directement la société d'État au lieu de passer par une 25 série de programmes et faire en sorte que la société StenoTran 2130 1 d'État vienne toujours en compétition avec le secteur 2 privé, ce qui est aberrant, à mon point de vue. 3 9922 LA PRÉSIDENTE: Alors c'est le fait 4 que la société d'État a accès à la publicité et aux 5 fonds et aux allocations parlementaires. 6 9923 M. CREVIER: Le fait également 7 qu'elle se comporte comme un réseau privé. 8 9924 LA PRÉSIDENTE: Comme...? 9 9925 M. CREVIER: Comme un réseau privé. 10 9926 LA PRÉSIDENTE: Oui. 11 9927 Maintenant, laissez-moi essayer de 12 mettre ensemble les paragraphes qui suggèrent un 13 certain marché. Vous dites au paragraphe 129 que, dans 14 certaines programmations, qui est des catégories que le 15 Conseil essaie d'encourager, les fictions lourdes, 16 qu'il n'y a que deux clients qui achètent des séries 17 dramatiques de fiction lourde parce que TQS et 18 Télé-Québec s'en sont retirées. Donc nous avons deux 19 clients en concurrence dans un domaine assez important 20 pour la programmation canadienne. 21 9928 Vous dites aussi au paragraphe 62, 22 qui est à la page 21, en parlant justement 23 d'allocations parlementaires, que les déboursés du 24 fonds destiné à Radio-Canada sont venus simplement 25 compenser la baisse des allocation parlementaires. StenoTran 2131 1 Donc nous avons un Radio-Canada qui a accès au fonds, 2 mais ça ne remplace que les allocations parlementaires 3 qu'ils avaient avant. Et vous parlez aussi, à la 4 recommandation 9 dont nous avons parlé plus tôt, de la 5 concurrence. 6 9929 Alors si on essayait d'empêcher 7 Radio-Canada, justement, de concurrencer dans ces 8 certains domaines là, qu'est-ce qu'on aurait comme 9 concurrence dans le marché au niveau des stations 10 hertziennes? Vous m'avez entendue poser la même 11 question ce matin. Quand on parle de Radio-Canada et 12 du secteur francophone, comment, à ce moment-là, 13 réconciliez-vous... vous n'êtes pas d'accord, je 14 suppose, avec Mme Fortin qui dit qu'on n'a pas le 15 choix, au Québec, Radio-Canada va concurrencer. 16 9930 Vous voyez le portrait que je vous 17 fais selon vos propres recommandations et votre vue du 18 secteur comme il existe? 19 9931 M. CREVIER: Personnellement, je 20 trouverais ça très dommageable, et très regrettable 21 surtout, que Radio-Canada se retire des séries 22 dramatiques lourdes et des séries dramatiques en 23 général parce que Radio-Canada a aidé beaucoup à créer 24 ces séries-là et a vraiment fait un travail de qualité 25 et, je pense, même, doit être récompensée pour le StenoTran 2132 1 travail que Radio-Canada a fait. 2 9932 Quand je parle, moi, du côté 3 commercial de Radio-Canada, je ne le vois pas sur un 4 certain nombre d'éléments et de production qui 5 reflètent de façon... parce que les productions lourdes 6 et les dramatiques également reflètent la culture 7 canadienne. Moi, je le vois davantage sur les 8 négociations sur les jeux olympiques, les droits du 9 hockey, des achats de films américains, des 10 acquisitions et non pas des productions maison. Tout 11 ça fait en sorte que Radio-Canada, là, vient 12 compétitionner le secteur privé. Mais on ne doit pas 13 retirer totalement Radio-Canada d'une expertise 14 extraordinaire qu'elle a développée et des succès 15 remarquables qu'elle a enregistrés aussi. 16 9933 LA PRÉSIDENTE: Donc ce genre de 17 production, pour vous, s'insérerait dans votre 18 recommandation de s'assurer que la télévision d'État 19 soit complémentaire. Et que faites-vous des autres 20 catégories de programmation? Si on enlevait, à ce 21 moment-là, la concurrence de Radio-Canada dans... vous 22 avez vu sans doute les recommandations de TVA à cet 23 effet, qui sont assez précises. Vous étiez là ce 24 matin, je pense, quand on en a discuté plus tôt. 25 9934 Pour essayer de maintenir StenoTran 2133 1 Radio-Canada, de lui enlever cette force-là dans le 2 marché francophone, est-ce qu'à votre avis il y aurait 3 des effets sur la concurrence dans certains secteurs de 4 programmation ou s'il faudrait se fier, à ce moment-là, 5 à la concurrence entre TQS et TVA au niveau des ondes 6 hertziennes? 7 9935 M. CREVIER: Je reviens sensiblement 8 à la même allusion que je faisais sur les séries 9 dramatiques: Je pense que Radio-Canada peut amener en 10 termes de qualité dans les produits une concurrence qui 11 est saine dans notre système. Moi, quand j'ai fait, 12 par le passé, toujours référence à Radio-Canada en 13 termes, je dirais, d'abus de pouvoir, c'était surtout 14 relié à l'acquisition de droits, à l'acquisition des 15 olympiques, à l'acquisition des droits de sports, à 16 l'acquisition des films américains. Je n'ai jamais 17 compris pourquoi l'argent des contribuables canadiens 18 servait à acheter des films américains à gros prix à 19 Radio-Canada et compétitionner le secteur privé. 20 9936 Que Radio-Canada vienne 21 compétitionner TQS, Télé-Québec, TVA dans le secteur 22 des variétés, des séries dramatiques, des documentaires 23 et tout ça, et de l'information, je trouve ça 24 extraordinaire; au contraire, ça contribue à créer la 25 richesse dans un système et de créer un environnement StenoTran 2134 1 compétitif sain... parce que la compétition, ce n'est 2 pas uniquement malsain, ça peut être très sain. 3 9937 LA PRÉSIDENTE: Alors quand vous 4 parlez de la modification du système d'accès de 5 Radio-Canada au fonds, vous verriez possiblement une 6 modification qui ne serait pas totale mais qui serait 7 limitée à certaines catégories visant la 8 complémentarité de Radio-Canada plutôt que la 9 concurrence avec le secteur privé. 10 9938 M. CREVIER: Oui, c'est une façon de 11 le voir. L'autre façon de le voir, ça pourrait être 12 tout simplement de modifier les enveloppes budgétaires 13 et de financer convenablement Radio-Canada pour ses 14 besoins et dire à Radio-Canada: "Maintenant, vous 15 n'avez plus besoin d'avoir accès à ces fonds-là parce 16 qu'on vous a donné les crédits nécessaires pour 17 atteindre vos objectifs et votre mission." 18 9939 LA PRÉSIDENTE: À ce moment-là, vous 19 qui êtes dans le secteur de la production, vous verriez 20 un système beaucoup plus sain. 21 9940 Mme DUFOUR: Ce qu'on peut ajouter 22 aussi, c'est que lorsque le 50 pour cent a été établi, 23 il y a une partie qui était pour combler le financement 24 de Radio-Canada, mais l'autre partie, il n'y avait pas 25 nécessairement les joueurs que l'on retrouve StenoTran 2135 1 nécessairement aujourd'hui dans les réseaux 2 spécialisés. Il y a de nouveaux joueurs qui font du 3 contenu canadien. Il n'y a peut-être pas la nécessité 4 aujourd'hui de concentrer la moitié d'une enveloppe 5 destinée à un contenu canadien au diffuseur public; 6 c'est de partager plus l'enveloppe avec des joueurs si 7 on veut que les diffuseurs privés et spécialisés s'y 8 impliquent plus, qu'il y ait un accès plus grand parce 9 que le marché a changé. 10 9941 LA PRÉSIDENTE: En tenant compte de 11 cette partie de télédiffuseurs qui est assez nouveau. 12 Mais on revient toujours au Québec, évidemment, et 13 partout au Canada, il y a une proportion de la 14 population pour qui les services spécialisés ne sont 15 pas nécessairement une offre alléchante parce qu'ils ne 16 sont pas abonnés au système de distribution qui leur 17 permettrait de les recevoir. Donc les ondes 18 hertziennes restent encore, pour rencontrer le mandat 19 de la Loi sur la radiodiffusion assez importante. 20 9942 Allez-y. 21 9943 M. HOULE: Je voulais juste dire que 22 la règle a été établie en 1983 au moment de la création 23 du fonds de Téléfilm Canada, et à ce moment-là, même au 24 niveau de la télévision hertzienne, par exemple dans le 25 marché francophone TQS n'existait pas; dans le marché StenoTran 2136 1 anglophone au Québec Global n'était pas présent, Global 2 était un service régional. Le Conseil a attribué de 3 nouvelles licences à des groupes de propriétés dans les 4 marchés aussi au Canada anglais à Winnipeg, à 5 Vancouver, et caetera. 6 9944 Donc, même dans l'univers de la 7 télévision hertzienne accessible à tout le monde, le 8 poids de Radio-Canada, le poids relatif, a diminué du 9 fait de l'ajout d'une plus grande diversité, et ce 10 qu'on demande, c'est simplement qu'il y ait un certain 11 suivi pour faire des ajustements de sorte que la règle 12 qui a été établie il y a 15 ans reflète un peu plus la 13 composition actuelle de l'industrie. 14 9945 LA PRÉSIDENTE: Évidemment, toutes 15 ces règles ne découlent pas nécessairement du CRTC, 16 mais je pense qu'il est intéressant de voir quand même 17 la vision que les parties intéressées ont de ce que le 18 système dans sa totalité... quelle allure le système 19 devrait avoir. 20 9946 Au niveau de l'intégration verticale 21 entre les télédiffuseurs et la production, si je 22 comprends bien, vous êtes d'avis que l'accès aux fonds 23 ou les avantages fiscaux pour les télédiffuseurs ne 24 devraient pas exister mais, en contrepartie, vous 25 suggérez un fonds nouveau ou une règle nouvelle qui StenoTran 2137 1 permettrait des investissements de 20 pour cent ou plus 2 de la part canadienne d'un budget, et que ce 20 pour 3 cent là pourrait être comptabilisé comme dépense vers 4 la programmation canadienne, si je me souviens bien, ou 5 si vous recommanderiez qu'il soit accessible pour des 6 crédits fiscaux? C'est votre position? 7 9947 M. GAUDREAU: Effectivement, on pense 8 qu'il y aurait peut-être une avenue intéressante à 9 explorer du côté de la participation des télédiffuseurs 10 dans le produit au-delà des droits de diffusion, des 11 droits de licence. On pense à un investissement dans 12 le produit sur lequel ils pourraient recevoir un crédit 13 d'impôt du même type qu'on reçoit actuellement. 14 9948 M. CREVIER: Juste peut-être une 15 petite remarque; c'est qu'on parle bien 16 d'investissement et on ne parle pas de dépense, qui 17 sont deux nuances totalement différentes. 18 9949 LA PRÉSIDENTE: D'investissement en 19 capital mais qui pourrait être comptabilisé, à votre 20 avis... 21 9950 M. CREVIER: Non. 22 9951 LA PRÉSIDENTE: Ah, bon. 23 9952 M. CREVIER: Pour nous, un 24 investissement, c'est vraiment un investissement et ça 25 doit être... StenoTran 2138 1 9953 LA PRÉSIDENTE: En capital seulement. 2 9954 M. CREVIER: En capital. Ça doit 3 être traité comme un investissement. 4 9955 À titre d'exemple, je ne sais pas, 5 nous, on vient de décider de se lancer dans la 6 production de produits IMAX, et la Caisse de dépôt du 7 Québec a investi 6 millions de dollars au capital du 8 projet IMAX, mais d'aucune façon ça ne fait partie de 9 dépenses; c'est vraiment un investissement. 10 9956 LA PRÉSIDENTE: Et qu'est-ce que vous 11 recommandez comme dépenses qui seraient éligibles pour 12 rencontrer le pourcentage de dépenses à la 13 programmation canadienne que vous recommandez soit 14 exigé? 15 9957 M. GAUDREAU: Voulez-vous reprendre 16 la question, s'il vous plaît? 17 9958 LA PRÉSIDENTE: Je pense que vous 18 acceptez la proposition de l'Association des 19 producteurs qui continuerait d'exiger, pour les 20 télédiffuseurs, une certaine proportion de leurs 21 revenus vers les dépenses canadiennes. Vous 22 recommandez de continuer la formule A et B au choix des 23 télédiffuseurs. 24 9959 Alors je vous demande quelles 25 seraient les dépenses qui seraient éligibles pour StenoTran 2139 1 rencontrer ce pourcentage des recettes de l'année 2 précédente. 3 9960 M. HOULE: Ce que nous disons, c'est 4 qu'on suggère que tous les diffuseurs doivent consacrer 5 une partie de leurs revenus, un pourcentage de leurs 6 revenus à titre de dépenses d'émissions canadiennes, 7 comme le Conseil le pratique dans le secteur de la 8 télévision spécialisée et payante depuis déjà plusieurs 9 années, et toute personne qui veut obtenir une licence 10 dans ce secteur-là doit prendre un engagement de cette 11 nature-là. On pense que cette formule s'est avérée 12 efficace dans le secteur de la télévision spécialisée, 13 qui fait beaucoup de contenu canadien et qui livre des 14 auditoires canadiens, et qu'elle devrait être appliquée 15 aux télédiffuseurs conventionnels également. 16 9961 Le pourcentage exact, je pense, 17 devrait être débattu par le Conseil au cas par cas avec 18 chaque diffuseur pour tenir compte de la nature de ce 19 diffuseur-là, de son passé, de sa situation 20 particulière, mais que le principe devrait être que 21 chacun doit consacrer un pourcentage. De cette 22 façon-là, ça assure que s'il y a croissance des revenus 23 des diffuseurs, il y aura croissance des dépenses de 24 programmation canadienne, ce qui n'est pas le cas 25 actuellement. Si on regarde les chiffres que le StenoTran 2140 1 Conseil a publiés en annexe de l'avis public, on voit 2 que la croissance des dépenses de programmation 3 canadienne des diffuseurs conventionnels au Canada est 4 largement inférieure à la croissance de leurs revenus. 5 9962 M. CREVIER: Je me permettrais, si 6 vous le permettez, Madame Wylie, aussi un commentaire 7 peut-être qui déborde un peu le cadre de votre question 8 et qui est plus large. Vous connaissez très bien la 9 mécanique quand il y a une tenue d'audience comme ça; 10 chacun, chaque groupe, chaque compagnie développe ses 11 points, son mémoire, parle à ses associations 12 respectives pour s'assurer également qu'il y a une 13 forme de concordance. 14 9963 Moi, ce qui m'a beaucoup frappé sur 15 ces audiences-ci, quand j'ai commencé à prendre 16 connaissance un peu de l'ensemble des documents, c'est 17 qu'il y a beaucoup de ce que j'appelle de suggestions 18 concernant la micro réglementation. Quand je me 19 mettais à lire ça, je me disais: Il y a quelque chose 20 qui ne fonctionne pas. On s'en va dans une orientation 21 de globalisation des marchés, et ça a été clairement 22 démontré dans le passé que, quand on visait une 23 globalisation des marchés, la micro réglementation ne 24 pouvait pas tenir. 25 9964 Moi, je pense que ça devrait StenoTran 2141 1 s'appliquer à ces audiences-ci et à la résultante de 2 ces audiences-ci. Il n'y a pas un pays qui a réussi à 3 développer de façon énergique un secteur industriel 4 dans une orientation de globalisation de marchés quand 5 on a été excessif du point de vue de la micro 6 réglementation. Je regardais même le mémoire que nous, 7 on vous a déposé; il y a plein d'éléments de micro 8 réglementation, de pourcentages, de calculs et tout ça. 9 9965 Dans les faits, je pense qu'il y a 10 quatre grands secteurs qui devraient être adressés par 11 la réglementation de façon simple et efficace: des 12 obligations et un pourcentage sur du contenu canadien; 13 des obligations et un pourcentage sur des dépenses de 14 programmation canadienne; des règles sur la propriété, 15 l'exemple du 33 pour cent d'intégration verticale; et 16 des incitatifs à l'exportation parce que ce qu'on veut 17 également, c'est exporter notre savoir-faire. 18 9966 Donc je pense que ce sont les quatre 19 grands secteurs qui devraient être couverts par des 20 règles simples et efficaces et sans viser une micro 21 réglementation lourde et qui ne pourrait résister, de 22 toute façon, au phénomène de la globalisation. 23 9967 LA PRÉSIDENTE: Mais il reste quand 24 même que vous continuez à favoriser la formule A et B 25 et qu'à la page 17, au paragraphe 42 je crois, vous StenoTran 2142 1 semblez entériner les recommandations qui visent à 2 consacrer un pourcentage plus élevé des recettes 3 totales de l'année précédente aux émissions de 4 divertissement et aux documentaires canadiens. 5 9968 À ce moment-là, est-ce que vous 6 entérinez la fameuse proposition 10/10/10 et est-ce que 7 c'est en sus de A et B? Et ça me semble assez micro, 8 finalement, d'établir... alors c'est un peu 9 difficile... 10 9969 M. CREVIER: Vous êtes rendue 11 exactement au point où je faisais tantôt la remarque... 12 9970 LA PRÉSIDENTE: Oui, ce sont vos 13 recommandations. 14 9971 M. CREVIER: Ce sont nos 15 recommandations, mais ce que je vous disais, c'est que 16 même moi, en prenant connaissance de la 17 réglementation... 18 9972 LA PRÉSIDENTE: Ah, vous n'aimez même 19 pas votre propre dossier. 20 9973 M. CREVIER: Bien, je pense qu'il y a 21 eu abus de la part de l'ensemble des participants dans 22 une orientation de micro réglementation, y compris nous 23 autres. 24 9974 LA PRÉSIDENTE: Depuis le début de 25 l'audience. StenoTran 2143 1 9975 M. CREVIER: Oui, absolument. 2 9976 LA PRÉSIDENTE: Et vous avez 3 participé à cette... 4 9977 M. CREVIER: À cette réflexion. 5 9978 LA PRÉSIDENTE: ... mauvaise 6 orientation. 7 9979 M. CREVIER: Nous avons participé... 8 9980 LA PRÉSIDENTE: Il ne faut pas... 9 9981 M. CREVIER: ... mais vous m'avez dit 10 tantôt que j'avais le droit de changer d'idée. 11 9982 LA PRÉSIDENTE: Il faut recommencer. 12 On recommence... le 1er novembre on recommence avec 13 M. Crevier, qui va nous mettre sur la bonne piste. 14 9983 Alors vous n'êtes plus d'accord avec 15 la formule A et B et 10 pour cent en sus. Alors lequel 16 des deux, ou est-ce qu'on laisse tout tomber? Est-ce 17 que vous êtes toujours d'avis que c'est nécessaire? Ce 18 n'est pas parce que vous avez vu dans le journal que 19 les radiodiffuseurs allaient tous faire faillite que 20 vous avez pris la peur comme ça? 21 9984 M. CREVIER: Non, bien au contraire. 22 Je pense que tout le monde doit être assujetti à un 23 pourcentage de dépenses de programmation. 24 9985 LA PRÉSIDENTE: Mais au paragraphe 43 25 vous êtes très précis, 10/10; 10 pour cent des recettes StenoTran 2144 1 brutes de l'année précédente, ça, vous trouvez que 2 c'est trop spécifique. 3 9986 M. HOULE: Je pense qu'au départ on a 4 consulté les associations; Coscient est membre à la 5 fois de l'APFTQ et du CFTPA, et nous avons appuyé la 6 recommandation du CFTPA, qui visait plutôt une 7 recommandation en termes de pourcentage de dépenses, de 8 pourcentage d'heures, et caetera. Ce que Guy indique 9 maintenant, c'est qu'on appuie largement l'esprit dans 10 lequel la CFTPA l'a fait mais on dit que peut-être 11 qu'il faudrait trouver des règles qui soient moins 12 spécifiques à dire trois heures de tel contenu, 10 pour 13 cent de tel autre et sept heures de tel contenu mais 14 plutôt dire qu'il faut, donc, un pourcentage de contenu 15 canadien qui soit significatif, un pourcentage des 16 dépenses de programmation canadienne... des revenus qui 17 soit consacré aux dépenses de programmation canadienne 18 qui aille en croissant, et laisser un peu plus de 19 souplesse à l'intérieur de ça aux différents diffuseurs 20 pour établir leurs politiques de programmation, mais 21 qu'ils aient des obligations globales en termes 22 d'émissions canadiennes et notamment d'émissions 23 canadiennes de divertissement. 24 9987 M. CREVIER: On disait également dans 25 notre présentation... Laurent y faisait référence dans StenoTran 2145 1 la présentation en disant: Il faut également 2 encourager le risque mais récompenser également la 3 réussite. 4 9988 Moi, je pense que dans le système 5 actuellement, et avec Téléfilm et avec vous, il y a 6 plein d'éléments de récompense pour les gens qui se 7 conforment à l'essence et qui sont dynamiques à 8 l'intérieur du système. Plein de gens se présentent 9 devant vous pour demander des canaux spécialisés; les 10 gens qui font une contribution majeure au système 11 devraient être priorisés pour ces canaux spécialisés 12 là, les producteurs qui apportent des produits de 13 qualité de contenu devraient être également encouragés 14 dans leur accès à des fonds. On pourrait modifier 15 aisément quelques règles qu'il y a dans le système 16 actuellement pour arriver à un système qui est beaucoup 17 plus dynamique et qui favorise la réussite. 18 9989 LA PRÉSIDENTE: Examinons maintenant 19 quelle autre proposition vous changez. 20 9990 Celle à la page 39, la recommandation 21 5, ou page 5... la recommandation qui dit qu'un 22 pourcentage des dépenses aux indépendants devrait être 23 exigé de tous les télédiffuseurs, incluant les 24 télédiffuseurs spécialisés; un pourcentage très précis 25 des dépenses devrait aller dans la production. StenoTran 2146 1 9991 Cette recommandation-là, vous y tenez 2 toujours. 3 9992 M. CREVIER: Absolument. Ça fait 4 partie des quatre grandes catégories qu'on a décrites 5 tantôt et c'est une des suggestions que nous faisons 6 relativement aux entreprises à l'intégration; ça 7 s'adresse aux entreprises qui sont non liées. 8 9993 LA PRÉSIDENTE: Ça, ce serait un 9 pourcentage des dépenses totales ou un pourcentage du 10 pourcentage que nous exigerions auquel vous ne croyez 11 plus? 12 9994 M. GAUDREAU: Moi, je pense qu'on 13 parle d'un pourcentage en fonction du diffuseur auquel 14 on s'adresse. On sait que TQS, de par sa licence, doit 15 confier une certaine partie de son budget à la 16 production indépendante. Je pense que ça pourrait être 17 le cas pour d'autres diffuseurs, mais à mon avis il 18 faut analyser ça un peu cas par cas parce qu'il y en a 19 qui ont un historique de production dans leurs 20 stations, dans leurs chaînes; d'autres, c'est peut-être 21 plus facile d'aller vers la production indépendante, 22 mais je pense que ça devrait être une politique qui 23 s'applique à tous les diffuseurs. 24 9995 M. CREVIER: D'ailleurs, je pense que 25 ce système-là a été très bien appliqué pour les canaux StenoTran 2147 1 spécialisés. M. Bureau faisait référence ce matin que 2 pour eux autres c'était un environnement qui est très 3 viable. 4 9996 Je voudrais quand même prendre la 5 peine de corriger un petit peu... je ne voulais pas 6 vous laisser sur une fausse impression. Ce que je 7 disais tantôt, ce n'est pas qu'on ne veut plus avoir de 8 réglementation, bien au contraire, mais qu'on ne veut 9 pas avoir de micro réglementation. 10 9997 Les quatre grands secteurs que j'ai 11 énumérés tantôt sont des secteurs essentiels. Des 12 pourcentages précis sur le contenu canadien, des 13 pourcentages précis sur les dépenses de programmation 14 canadienne, des règles sur la propriété et des 15 incitatifs à l'exportation, c'est quatre grands 16 secteurs qui devraient être totalement couverts par la 17 réglementation. 18 9998 Ce qui m'a frappé, ce que vous 19 expliquais, c'est que quand j'ai pris connaissance des 20 différents mémoires, où chacun arrive avec sa micro 21 réglementation, et là il faut, selon les catégories, 22 ajouter des multiples, multiplier, diviser, on va 23 sortir une bible qui, en bout de ligne... j'ai 24 l'impression, moi, dans une orientation de 25 globalisation, que cette micro réglementation là ne StenoTran 2148 1 tient pas. 2 9999 LA PRÉSIDENTE: Quelles autres 3 recommandations ont été faites que vous trouvez micro? 4 Si vous acceptez que des pourcentages de recettes 5 annuelles soient dépensés vers la programmation 6 canadienne et qu'à l'intérieur de ça on exige un 7 certain pourcentage pour les indépendants, quand on 8 établit des pourcentages, c'est micro au début. 9 10000 M. CREVIER: Non, micro, moi, je 10 parlais des facteurs multiplicateurs sur les incitatifs 11 à la programmation... 12 10001 LA PRÉSIDENTE: Comme les crédits... 13 10002 M. CREVIER: Les crédits... 14 10003 LA PRÉSIDENTE: ... majorés, ce genre 15 de chose là. 16 10004 M. CREVIER: Oui, absolument. Ça, je 17 trouve que c'est de la micro réglementation. Les 18 pourcentages, pour moi, c'est la base même du système. 19 Ça, ce n'est pas de la micro réglementation. 20 10005 LA PRÉSIDENTE: Alors vous ne 21 croiriez pas, par exemple, au micro management de la 22 promotion et tout ces trucs-là, vous n'y croyez pas. 23 10006 M. CREVIER: Absolument. Je trouve 24 qu'on devrait... 25 10007 LA PRÉSIDENTE: Et alors ce serait à StenoTran 2149 1 la base, qui n'est pas tellement différente de ce que 2 le Conseil fait maintenant, mais vous y ajouteriez des 3 pourcentages précis vers les indépendants. 4 10008 Maintenant, vous dites que ce n'est 5 pas nécessaire d'obliger les télédiffuseurs à 6 rencontrer les exigences additionnelles en matière de 7 diffusion. Vous voulez dire par là les catégories et 8 les heures de diffusion. 9 10009 Qu'est-ce que vous voulez dire par 10 "additionnelles"? Parce que c'est évident qu'en ce 11 moment, au Canada français, on fait beaucoup plus que 12 ce qui est requis. Vous voulez dire additionnelles à 13 ce qui se fait en ce moment ou le simple 60/50? 14 10010 M. HOULE: Je pense que vous faites 15 référence à un passage où on parle de la radiodiffusion 16 de langue française, si je ne me trompe. 17 10011 LA PRÉSIDENTE: Oui. Ça, c'est au 18 paragraphe 48, à la page 18, et je pense qu'il y a 19 quelque chose de semblable à la page 16, au paragraphe 20 39. Allons voir. 21 10012 M. HOULE: Je crois que ce qu'on 22 dit... 23 10013 LA PRÉSIDENTE: Parce qu'il y a 24 toujours cette idée de... 25 10014 M. HOULE: ... c'est que dans le StenoTran 2150 1 système de la radiodiffusion de langue française, règle 2 générale, les diffuseurs conventionnels privés non 3 seulement respectent mais outrepassent les exigences 4 minimales en matière du contenu canadien, le 50/60, ils 5 consacrent une partie de leurs revenus en dépenses de 6 programmation canadienne qui est supérieure à celle des 7 diffuseurs de langue anglaise. Donc on ne voit pas 8 vraiment de raison d'imposer aux diffuseurs 9 conventionnels de langue française des obligations 10 additionnelles à celles qui sont déjà là, le 50/60 en 11 termes de contenu. 12 10015 LA PRÉSIDENTE: Je vous ai donné des 13 paragraphes et des pages au lieu de l'inverse. C'est à 14 la page 18, au paragraphe 48, où vous dites: 15 "En ce qui a trait aux 16 télédiffuseurs de langue 17 française, privés et publics, 18 nous ne croyons pas qu'il soit 19 nécessaire d'instaurer des 20 exigences réglementaires 21 additionnelles..." 22 Et on met l'accent sur "additionnelles" avec un 23 caractère différent, et alors je me demandais qu'est-ce 24 que ça voulait dire, "additionnelles". 25 10016 Je vais vous dire pourquoi, StenoTran 2151 1 Madame Dufour. C'est qu'on a parlé beaucoup du côté du 2 Canada français de s'assurer de garder ce qui est 3 acquis, qui est beaucoup plus que 50/60. Alors c'est 4 pour ça que je me demandais si vous ne voulez pas 5 d'exigences additionnelles... on me dit additionnelles 6 à 50/60, qui serait un recul assez sérieux vis-à-vis ce 7 qu'on a ou ce qu'on attend au Québec. C'est dans cette 8 optique-là que je vous pose la question. 9 10017 Vous avez mis l'accent sur le mot 10 "additionnelles", et je me demandais ce que vous 11 vouliez dire. 12 10018 M. HOULE: Je pense que c'est une 13 façon d'indiquer qu'on pense que la réglementation 14 actuelle de 60/50 doit demeurer et on ne croit pas 15 qu'on doit ajouter ni enlever. 16 10019 Guy a parlé tantôt de récompenser le 17 succès, et je pense que ce serait un drôle de 18 raisonnement de dire, parce que les diffuseurs de 19 langue française font plus que les obligations 20 réglementaires ou dépensent plus il faut augmenter ses 21 obligations réglementaires pour les amener au niveau 22 où... 23 10020 LA PRÉSIDENTE: Non, vous me 24 comprenez mal. 25 10021 M. HOULE: O.k. Je m'excuse. StenoTran 2152 1 10022 LA PRÉSIDENTE: Le 60/50 est beaucoup 2 moins que ce que les radiodiffuseurs font en ce moment 3 et ils semblent pouvoir survivre avec ce qu'ils font. 4 Un intérêt du Conseil et de la population est 5 évidemment est-ce qu'on maintient les acquis et comment 6 le fait-on. 7 10023 Mme DUFOUR: Je pense que, 8 premièrement, pour expliquer le "additionnelles" et 9 pourquoi il est en caractère gras, on se réfère à la 10 première partie du mémoire, qui fait un peu une étude 11 de cas sur ce qui se passe au Canada anglais et ce qui 12 se passe au Canada français. On dit qu'au Québec, dans 13 la production francophone, la programmation canadienne, 14 ce n'est pas un problème. Le problème réside dans le 15 financement. 16 10024 Alors, lorsqu'on dit qu'on n'a pas 17 besoin de créer des règles supplémentaires ou 18 additionnelles, je pense que le "additionnelles" venait 19 en référence aux problèmes dans le marché québécois. 20 10025 LA PRÉSIDENTE: Alors, à ce 21 moment-là, vous suggérez que ce soit par l'entremise 22 des pourcentages des dépenses qu'on garderait les 23 acquis dans le marché. 24 10026 M. HOULE: Exact. Je pense qu'un 25 pourcentage des revenus devrait être appliqué aux StenoTran 2153 1 dépenses de programmation canadienne... 2 10027 LA PRÉSIDENTE: Et, à votre avis, si 3 le but du Conseil est de maintenir les acquis, ce 4 serait suffisant, avec les impératifs du marché, et 5 caetera, et l'appétit de la population, pour garder le 6 même niveau de programmation canadienne. 7 10028 M. CREVIER: Est-ce que votre 8 question vise à savoir si les quotas devraient être 9 augmentés? 10 10029 LA PRÉSIDENTE: Non, non. C'était 11 simplement que j'étais curieuse de savoir qu'est-ce que 12 vous vouliez dire par "des exigences réglementaires 13 additionnelles", parce que si on reste à 65, le marché 14 change, la fragmentation, la concurrence... à ce 15 moment-là, est-ce que le Conseil ne devrait pas 16 s'inquiéter de la possibilité que le système serait tel 17 qu'on irait à la baisse vers le 60/50? 18 10030 M. CREVIER: Écoutez, moi, je pense 19 qu'il faut tenir compte de deux choses... et c'est là 20 un petit peu tantôt quand je parlais aussi d'une 21 question de micro réglementation et de récompenser la 22 réussite. Si vous adoptez un système comme ça, qu'à 23 chaque fois que quelqu'un réussit à aller plus haut que 24 la barre, vous montez la barre, les gens vont hésiter 25 beaucoup à aller plus haut que la barre. StenoTran 2154 1 10031 LA PRÉSIDENTE: Mais là, vous me 2 dites qu'"additionnelles", c'est plus que ce qu'ils 3 font en ce moment. 4 10032 M. CREVIER: Non, pas nécessairement. 5 10033 LA PRÉSIDENTE: Mais pas plus que 6 60/50. 7 10034 M. CREVIER: Admettons que vous 8 décidiez que la norme est à 60 pour cent, il n'y a pas 9 de problème du côté canada français. Les gens ont 10 toujours dépassé de façon considérable ces éléments-là. 11 10035 Si on parle d'un phénomène où la 12 barre était à 60 pour cent et les gens ont réussi à 13 monter ça à 75 pour cent, moi, je pense qu'on devrait 14 dire bravo et on devrait souligner l'effort de ces 15 gens-là et faciliter leur vie. 16 10036 Si, par le fait qu'ils ont monté à 75 17 pour cent vous décidez de mettre la barre à 75 pour 18 cent, je suis certain que ces gens-là vont y penser 19 deux fois avant d'aller à 80 pour cent. Ce n'est pas 20 une mesure qui encourage la réussite, et moi, je suis 21 dans un système où je trouve qu'on devrait encourager 22 la réussite. 23 10037 LA PRÉSIDENTE: Maintenant, si nous 24 revenions à l'intégration verticale, si je comprends 25 bien votre recommandation 19, ce serait investissements StenoTran 2155 1 en capital qui ne dépasseraient pas plus que 20 pour 2 cent, je crois. 3 10038 M. CREVIER: Ça dépend. C'est 33 4 pour cent la propriété de l'entreprise et 20 pour cent 5 dans le financement d'un produit. 6 10039 LA PRÉSIDENTE: Oui, et ça assurerait 7 à ce moment-là que la propriété du produit resterait 8 celle du producteur, même s'il y avait... 9 10040 M. CREVIER: Je crois que c'est une 10 mesure de protection de la propriété intellectuelle, 11 effectivement. 12 10041 LA PRÉSIDENTE: Mais en donnant quand 13 même un incitatif pour l'investissement en capital par 14 les télédiffuseurs. 15 10042 Vous nous recommandez, à la page 16 49 -- je pense que c'est bien ça -- recommandation 21, 17 que le Conseil favorise un accès plus large à la 18 coproduction internationale. Comment entrevoyez-vous 19 les efforts du Conseil dans cette direction-là? 20 10043 M. CREVIER: Essentiellement par la 21 reconnaissance des accords de coproduction. Je crois 22 qu'il y a des accords de coproduction actuellement dans 23 plus de 40 quelques pays, ce qui est une opportunité 24 extraordinaire. Je pense que le Canada également est 25 dans une situation remarquable du fait qu'il est StenoTran 2156 1 capable de maîtriser une production à la fois en 2 anglais et à la fois en français, nous avons une 3 ouverture vers les marchés américains et européens. 4 10044 On vit, comme j'y faisais référence 5 tantôt, dans un environnement de globalisation. Je 6 pense qu'il y a là une création importante de richesse 7 pour le Canada. Si on réussit à exporter notre 8 savoir-faire, et on a un savoir-faire qu'on a très bien 9 développé, il s'agit juste d'être ouverts à ça et de 10 s'assurer que... dans les quatre catégories que je 11 citais tantôt, il y en avait une qui était des 12 incitatifs à l'exportation. Je pense que c'est 13 souhaitable. 14 10045 On tient ce langage-ci devant le 15 forum du CRTC, mais on pourrait également le tenir 16 auprès de Téléfilm. Et je pense que c'est souhaitable 17 que toutes les règles canadiennes visent à 18 l'exportation de notre savoir-faire. 19 10046 LA PRÉSIDENTE: Voyez-vous des 20 mesures concrètes? Est-ce que vous entrevoyez des 21 mesures concrètes ou des changements que le Conseil 22 pourrait faire lui-même pour favoriser ces productions? 23 10047 M. GAUDREAU: Je pense que les fonds 24 actuellement disponibles devraient favoriser 25 particulièrement les coproductions internationales. StenoTran 2157 1 10048 LA PRÉSIDENTE: Alors ce sont surtout 2 les règles du fond qui sont en cause, pas celles 3 nécessairement du Conseil. Alors ce serait simplement 4 une recommandation que nous recommandions... 5 10049 M. GAUDREAU: Absolument. 6 Absolument. 7 10050 LA PRÉSIDENTE: ... si possible, ou 8 que nous discutions des règles pour encourager ces 9 productions. 10 10051 M. HOULE: Si je peux ajouter un 11 point, Madame la Vice-Présidente, le Conseil a amorcé 12 en parallèle un processus de consultation sur la 13 définition d'"émission canadienne", et là, le Conseil 14 peut intervenir directement. Il l'a déjà fait dans le 15 passé... 16 10052 LA PRÉSIDENTE: Par l'entremise... 17 10053 M. HOULE: ... pour reconnaître les 18 coproductions... 19 10054 LA PRÉSIDENTE: De ces définitions 20 elles-mêmes... 21 10055 M. HOULE: ... comme des émissions 22 canadiennes. 23 10056 LA PRÉSIDENTE: ... mais qui seraient 24 plus vide de sens si le fond n'est pas aussi au même 25 port. StenoTran 2158 1 10057 Mme DUFOUR: Oui. Il y a également la 2 reconsidération de la définition. On peut considérer 3 le crédit de 105 pour cent au dramatique qui, je vous 4 donne un exemple, peut être étendu aux coproductions. 5 10058 LA PRÉSIDENTE: En parlant de micro 6 réglementation, à la page 46, au paragraphe 146, vous 7 considérez ou recommandez qu'il y ait des seuils minima 8 pour les droits de diffusion que doit verser un 9 télédiffuseurs, et ils sont micro exacts: 25 pour cent 10 de la part canadienne du budget d'une émission 11 dramatique et 15 pour cent des autres catégories 12 d'émissions. 13 10059 Avez-vous changé d'idée sur ce 14 paragraphe? 15 10060 M. CREVIER: Je n'ai pas changé 16 d'idée, comme je n'ai pas changé d'idée sur la micro 17 réglementation. Je vais vous dire franchement que, si 18 le Conseil fait un effort remarquable pour ne pas aller 19 dans la micro réglementation et que vous laissez tomber 20 tous les aspects, pas uniquement celui-là, je vais être 21 très favorable à ça. 22 10061 LA PRÉSIDENTE: C'est un bon quid pro 23 quo à votre avis. Mais ça, ce serait encore le fonds 24 qui établirait ces seuils. 25 10062 M. HOULE: Quand le Conseil a créé StenoTran 2159 1 effectivement le Fonds de production, il avait lui-même 2 établi des seuils minima de licence. Ceci dit, sans 3 viser la micro réglementation du tout, ces seuils ont 4 été modifiés à plusieurs reprises suite à des 5 représentations au fond. 6 10063 Ce qu'on tente d'indiquer, c'est 7 qu'il y a eu des représentations qui ont été faites 8 devant vous de certains diffuseurs qui voudraient qu'on 9 considère les droits de diffusion qu'il verse pour 10 acquérir une émission comme un investissement, et on 11 dit qu'il faut faire la distinction entre des droits de 12 diffusion et un investissement en capital; l'un ne peut 13 pas servir pour l'autre. 14 10064 Les diffuseurs ont manifesté 15 l'intérêt de participer à la propriété des émissions 16 indépendantes à travers l'investissement. On dit: On 17 est d'accord, on est favorable à ça, mais à la 18 condition qu'elles ne viennent pas se soustraire si on 19 nous donnait avant 25 pour cent de la valeur du produit 20 en droit et on dit: Maintenant, on vous en donne 10 21 pour cent et on investit 15. Il n'y a pas plus 22 d'argent dans le système. 23 10065 Donc il faudrait qu'ils aient payé 24 d'abord le droit de diffusion selon la valeur marchande 25 du produit avant, et on a repris les seuils qui avaient StenoTran 2160 1 été proposés par le Conseil dans le Fonds de 2 production. 3 10066 LA PRÉSIDENTE: Maintenant, dans un 4 continuum entre la position du CFTPA, que vous 5 endossiez jusqu'à il n'y a pas longtemps, qui est 6 beaucoup plus précise, et celle de l'ACR, est-ce que 7 vous atteignez le milieu ou vous allez plus loin? 8 Est-ce que vous pensez que la position de l'ACR de se 9 fier sur des objectifs d'auditoire pour y arriver est 10 un peu trop macro? 11 10067 M. CREVIER: Je vais vous dire que je 12 suis assez embêté de répondre à cette question-là parce 13 que j'ai cru remarquer dans le déroulement des 14 audiences que c'était une question qui revenait à peu 15 près à tout le monde, et je n'ai pas encore entendu 16 quelqu'un qui était capable d'y répondre, tout comme 17 j'ai parlé à beaucoup d'intervenants dans le milieu et 18 je n'ai pas encore rencontré quelqu'un qui comprend la 19 proposition de l'ACR. 20 10068 Je vais vous dire même franchement 21 que je me permettrais peut-être un petit commentaire à 22 l'effet que je ne suis pas sûr qu'ils la comprennent 23 très bien eux-mêmes, quand je regarde les explications 24 qu'ils ont données. Donc, si vous permettez, je 25 m'abstiendrais de commenter la position de l'ACR. StenoTran 2161 1 10069 LA PRÉSIDENTE: Maintenant, nous 2 allons terminer avec une micro question. Vous m'avez 3 entendue poser cette question-là. 4 10070 Nous sommes un peu curieux de la 5 position de CINAR/Nelvana, puisque vous êtes vous-même 6 dans la production, qui proposait ou qui nous suggérait 7 qu'il y a une... que dans le marché c'est assez commun 8 que les diffuseurs puissent obtenir une part de 9 propriété dans une production équivalent à 50 pour cent 10 de la valeur de leur investissement en sus des droits 11 de diffusion une fois qu'ils ont recouvré entièrement 12 leur investissement, et eux, ils étaient d'avis que 13 cette méthode soit entérinée en règle quelconque. 14 10071 Est-ce que vous comprenez bien ce 15 dont ils parlent et est-ce que vous êtes d'accord? 16 10072 M. CREVIER: Oui, je comprends bien 17 ce dont ils parlent, en tout cas je pense bien le 18 comprendre. Ce que je crois comprendre, dans le fond, 19 c'est que CINAR dit oui à ce que quelqu'un puisse 20 investir comme investisseur, mais CINAR propose de 21 limiter le rendement de l'investissement à 50 pour 22 cent. 23 10073 Pour moi, j'ai un peu de difficulté à 24 comprendre la nécessité d'imposer une limite sur un 25 rendement. Quand vous investissez dans une production, StenoTran 2162 1 vous prenez un risque, et ce risque-là, si la 2 production est mauvaise, vous n'avez pas de rendement, 3 vous avez un rendement qui est négatif; si la 4 production est bonne, vous avez un rendement qui est 5 positif. 6 10074 Je ne vois pas pourquoi on limiterait 7 en bout de ligne le rendement à 50 pour cent pour 8 quelqu'un qui décide d'investir. Si quelqu'un décide 9 de nous accompagner dans une production IMAX, à titre 10 d'exemple, et que nous autres, on décide de produire un 11 film sur les caribous, il y a un risque qui est énorme. 12 Si la personne prend le risque et c'est le hit de 13 l'année, je pense que son risque est récompensé si la 14 production fait beaucoup d'argent et va au-delà d'un 15 rendement de 50 pour cent, mais déjà un rendement de 50 16 pour cent, c'est beaucoup. 17 10075 J'ai de la difficulté à comprendre 18 pourquoi CINAR tient à... je suis convaincu que 19 Micheline maîtrise très bien ce dossier-là aussi et 20 qu'elle a une raison de vouloir limiter le rendement, 21 mais j'ai de la difficulté, moi. 22 10076 On est dans un concept 23 d'investisseur, et je ne vois pas pourquoi on limite un 24 rendement dans un concept d'investisseur. 25 10077 LA PRÉSIDENTE: Alors vous préférez StenoTran 2163 1 votre position, qui serait une limite de 20 pour cent 2 de la propriété? 3 10078 M. CREVIER: Dans les deux cas il y a 4 des limites, parce qu'il ne peut pas y avoir un 5 investissement de plus que 49 pour cent. Si 6 l'investisseur investit plus de 49 pour cent, ce n'est 7 plus une production... 8 10079 LA PRÉSIDENTE: Est-ce que le but ici 9 n'est pas de limiter... 10 10080 M. CREVIER: Non, ça ne limitait pas 11 l'investissement, ça limitait le rendement sur 12 l'investissement... 13 10081 LA PRÉSIDENTE: Ça limitait le 14 rendement sur l'investissement. 15 10082 M. CREVIER: ... ce qui est très 16 différent. 17 10083 LA PRÉSIDENTE: Voilà. Merci 18 beaucoup. Au revoir et bon voyage de retour. 19 10084 Nous vous remercions de toutes vos 20 micro réponses. 21 10085 M. CREVIER: Je vous remercie 22 beaucoup. 23 10086 LA PRÉSIDENTE: Madame la Secrétaire. 24 1510 25 10087 MS BÉNARD: Thank you, Madam Chair. StenoTran 2164 1 10088 The next presentation will be by the 2 Canadian Association of Film Distributors and 3 Exporters, l'Association canadienne des distributeurs 4 et exportateurs de films. J'inviterais M. Paradis et 5 ses collègues à s'avancer. 6 10089 THE CHAIRPERSON: Good afternoon, 7 gentlemen. Go ahead when you are ready. 8 PRESENTATION / PRÉSENTATION 9 10090 M. PARADIS: Madame la Présidente, 10 Mesdames et Messieurs les Membres du Conseil, je me 11 présente, je suis Richard Paradis, président de 12 l'Association canadienne des distributeurs et 13 exportateurs de films. Je suis accompagné aujourd'hui, 14 à ma droite, d'André Link, qui est le chef 15 d'exploitation de Lions Gate Films, d'Andy Myers, qui 16 est vice-président, Distribution chez Behaviour; à ma 17 gauche, Victor Loewy, qui est le président du conseil 18 d'Atlantis Alliance Motion Picture Films, et de Dan 19 Lyon, qui est le vice-président chez Motion 20 International. 21 10091 L'association représente les intérêts 22 des plus importantes entreprises, sous contrôle 23 canadien, de distribution au Canada. En se présentant 24 devant vous aujourd'hui, l'association vise un objectif 25 fort précis. Nous voulons assurer au cinéma canadien StenoTran 2165 1 sa juste part dans la programmation offerte au public 2 canadien par les télédiffuseurs. Nous sommes d'avis 3 que la télévision est un médium extraordinaire pour 4 diffuser des longs métrages canadiens ainsi que pour 5 éveiller l'intérêt des téléspectateurs pour de tels 6 films. 7 10092 Comme vous le savez, l'ensemble des 8 intervenants du domaine du cinéma canadien travaillent 9 actuellement avec le ministère du Patrimoine à revoir 10 notre politique nationale dans le domaine du long 11 métrage, et nous pouvons vous affirmer d'ores et déjà 12 qu'il se dégage un consensus parmi les différents 13 intervenants. En effet, créateurs, producteurs, 14 distributeurs, propriétaires de salles de cinéma et le 15 public canadien s'entendent pour dire que les 16 radiodiffuseurs doivent jouer un rôle plus important 17 dans la production, promotion et la diffusion de notre 18 cinéma national. 19 10093 It is important to note that when the 20 Department of Canadian Heritage and its Minister, 21 Sheila Copps, launched its Canadian Feature Film Policy 22 Review in February of this year, it was clearly stated 23 in the department's discussion paper and we quote: 24 "With respect to broadcasting, 25 many suggested that Canada StenoTran 2166 1 should build on the success of 2 broadcasters, such as the UK's 3 Channel 4 or Canal + in France. 4 These broadcasters have 5 demonstrated a strong commitment 6 to their respective national 7 film industries by participating 8 actively in their financing, 9 promotion and broadcasting. 10 Another possibility is modifying 11 broadcast licences upon renewal 12 to encourage Canadian 13 broadcasters to dedicate more 14 financial resources and 15 broadcasting time to feature 16 films." 17 10094 CAFDE believes strongly that the 18 Commission must use this historic public hearing to 19 formally recognize the important role of feature films 20 in the Canadian broadcasting system and the programming 21 schedules of both conventional broadcasters and 22 specialty and pay services. 23 10095 Broadcasters, both private and 24 public, have a habit of using feature films extensively 25 during this critical three week survey sweeps in the StenoTran 2167 1 fall and spring of each year, which help determine for 2 the following year the advertising rates the 3 broadcasters can then charge the advertisers. There is 4 no doubt that feature films deliver audiences. 5 10096 What we are asking the Commission to 6 do is much like you have done in the past for 7 conventional programming, require from broadcasters a 8 commitment and dedicated funding towards Canadian 9 feature films to be shown in prime time. 10 10097 And what does the public, the 11 viewers, think of our proposal, especially in light of 12 the CAB's statements regarding the need to concentrate 13 on increasing viewership to Canadian programming? 14 10098 In the survey research we submitted 15 with our written brief, 69 per cent of respondents 16 strongly agreed that it is very important that Canadian 17 feature films be shown on Canadian television. 18 Approximately six out of ten respondents strongly 19 agreed that people would watch Canadian feature films 20 if they were promoted and advertised better. 21 10099 In your own CROP survey, 54 per cent 22 of respondents claimed that there are not enough 23 Canadian films presented on television. The lack of 24 Canadian films got the highest score of dissatisfaction 25 from respondents. StenoTran 2168 1 10100 As distributors, we are convinced 2 that the only way to create an interest in our films is 3 if Canadians get to see them and considering that 4 Canadians spend an average of 23 hours a week watching 5 television, it remains in our eyes one of the best 6 means available to reach them to promote Canadian films 7 and to have them watch them. 8 10101 For Canadians to truly be able to 9 access Canadian feature films through television, 10 conventional broadcasters have to be part of the mix. 11 The share of viewing of Canadian pay and specialty 12 services, while growing in the case of specialty, 13 remains marginal relative to the tremendous draw of 14 viewers to programming presented by conventional 15 broadcasters. 16 10102 As we mentioned earlier, both in 17 France and Great Britain broadcasters are increasingly 18 involved in financing and broadcasting feature films. 19 10103 In Canada, broadcasters contribute 20 little to the actual development and production of 21 Canadian feature films. A recent study released by la 22 SODEC covering 1996-97, shows that the share of 23 broadcaster investment in 30 feature film projects with 24 a total budget of over $107 million, was a meagre 2.1 25 per cent, representing $450,000 in investment and $1.8 StenoTran 2169 1 million for licence fees. 2 10104 With regards to the CAB proposal, 3 that Canadian broadcasters should not be excluded as an 4 eligible producer or distributor of Canadian feature 5 films, or any other type of production, CAFDE shares 6 the position of the two producer associations in 7 rejecting that proposal. 8 10105 Broadcasters already have a choice 9 privilege to use the airwaves, to benefit from the low 10 cost to them of high-quality productions from the 11 independent producers and have their program rights 12 protected through simultaneous substitution. We fail 13 to see how their moving in on the independent sector 14 will ultimately benefit the broadcasting system without 15 seriously affecting the capacity of both the producers 16 and distributors of being able to maintain viable 17 operations. 18 10106 It is not appropriate for 19 broadcasters to get involved in distribution rights in 20 either feature films or television programs unless they 21 are major equity investors in either type of project. 22 The only way Canadian independent production and 23 distribution companies can survive and grow in the long 24 term is by building up their catalogue. Conventional 25 broadcasters, for their part, have been consistently StenoTran 2170 1 reducing their share of commitment to Canadian 2 programming their licence fees over the last few years. 3 10107 The Minister of Canadian Heritage, 4 Sheila Copps, made her views clearly known on this 5 issue at this year's Banff Television Festival. At 6 that time, the Minister stated that she had no 7 intention of caving in to TV broadcasters lobbying to 8 change current funding rules to cut out the independent 9 production sector and get public funding directly. 10 Such a move would also give them world distribution 11 rights for programs. The Minister stated clearly that 12 the fear of the independent production sector was, and 13 we quote: 14 "...a legitimate fear: A 15 licence to broadcast television 16 is not necessarily a licence to 17 take over production. If you're 18 talking about being a partner, a 19 partner means putting your money 20 where your mouth is." 21 10108 We agree with the Minister. 22 10109 With regards to the CBC, we believe 23 that the public broadcaster should assume much more 24 responsibility for the production, promotion and 25 broadcast of Canadian feature films. However, we StenoTran 2171 1 disagree with the approach proposed by the CBC which 2 wishes to get involved at all levels of feature film 3 production from script writing to distribution. The 4 CBC should be an active participant only as an 5 investor, broadcaster and promoter of Canadian films, 6 much like the BBC does in Britain. 7 10110 Furthermore, when the Commission 8 reviews the plans of the CBC next year, it should 9 review the role of the public broadcaster in actively 10 supporting Canada's feature film sector. Why does the 11 CBC not have an ongoing television program offering in 12 prime time some visibility to our domestic cinema and 13 its actors, its creators, its producers and directors? 14 Why does the CBC not promote Canadian films when they 15 are in the theatre circuit? 16 10111 CAFDE recommends the Commission 17 examine all proposals fro,m broadcasters, both private 18 and public, at renewal time to evaluate what 19 commitments each one is prepared to do to help the 20 Canadian feature film industry. 21 10112 On the issue of North American 22 rights, our association considers the Commission must 23 use this unique opportunity to resolve the serious 24 problem which has undermined our capacity as 25 distributors to fully benefit from the potential of our StenoTran 2172 1 own domestic market. The CRTC must put in place a 2 regulatory structure which will at last recognize 3 Canada as a distinct market from the U.S. for film and 4 television rights. 5 10113 The Commission is aware of the recent 6 appeal that the association launched with regards to 7 the CRTC decisions regarding DTH pay-per-view and the 8 issue of Canada being recognized as a distinct market 9 for acquiring non-proprietary film product from foreign 10 sources. The federal government decided on June 4 to 11 uphold the CRTC decisions, but at the same time stated 12 that the government is nonetheless, and we quote: 13 "...committed to the development 14 of a strong Canadian film and 15 television industry, which 16 includes a distinct Canadian 17 market for film and television 18 rights. The feature film policy 19 review and the CRTC's policy 20 review on Canadian programming 21 now underway will be examining 22 ways to achieve this objective." 23 10114 On this issue, it was mentioned by 24 both producer associations earlier in this proceeding 25 that it is becoming increasingly difficult to get the StenoTran 2173 1 American studios to recognize that Canada is in effect 2 a separate country from the United States. 3 10115 Canadian feature film producers and 4 distributors have to deal on a daily basis with the 5 overwhelming domination of American product on our 6 theatre screens, which historically has not resulted in 7 any concrete benefits for the Canadian feature film 8 industry. 9 10116 The Commission must realize that 10 Canadian distributors control less than 15 per cent of 11 the feature film distribution revenues generated in 12 Canada and that this seriously limits the capacity of 13 Canadian-owned distributors to contribute to the 14 production and distribution/promotion of Canadian 15 films. 16 10117 CAFDE believes that the present 17 policy review offers a unique opportunity to truly 18 integrate the Canadian feature film industry as 19 full-fledged partner in developing quality Canadian 20 content which can effectively contribute to adding 21 value to the program schedules of Canadian broadcasters 22 on an ongoing basis. 23 10118 En guise de conclusion, nous 24 demandons au CRTC de faire siennes les recommandations 25 suivantes: StenoTran 2174 1 10119 - Exiger des télédiffuseurs privés et 2 publics non seulement qu'ils investissent dans les 3 longs métrages canadiens mais qu'ils en fassent aussi 4 la promotion et qu'ils les diffusent aux heures de 5 grande écoute. 6 10120 - Reconnaître la nécessité d'un 7 marché canadien distinct et indépendant dans le domaine 8 des droits des émissions de télévision et des longs 9 métrages. 10 10121 - Exiger que tous les télédiffuseurs 11 canadiens acquièrent des distributeurs canadiens les 12 droits de non propriétaires des longs métrages 13 étrangers. 14 10122 Nous vous remercions de votre 15 attention et sommes prêts à répondre à vos questions. 16 10123 LA PRÉSIDENTE: La conseillère 17 Pennefather. 18 10124 Good afternoon, gentlemen. 19 10125 It is a pleasure to see you all here 20 today. I feel the urge to take advantage of the 21 presence of such experience from those who built, a 22 number of you, the Canadian film distribution industry 23 in this country, to quiz you at length about the future 24 of Canadian feature films, but I understand you have a 25 pressing engagement, so I will be as precise as StenoTran 2175 1 possible. 2 10126 In fact, your oral presentation has 3 brought certain precisions to your written submission 4 and I appreciate that. So, I would like to in fact 5 just make sure that I have understood some of the 6 points that you raised this afternoon that clarify your 7 written submission, or we can clarify it further as the 8 case may be. 9 10127 On peut répondre en anglais ou en 10 français, comme on veut. On va faire ça dans les deux 11 langues. 12 10128 I will refer to the written 13 submission first. It is very clear from what you have 14 said, both today and in that submission, that Canada's 15 broadcasters are key to the future of feature films. 16 10129 I don't think this is a new concept. 17 In fact, broadcasters tell us that they currently 18 acquire the rights to all Canadian features that are 19 available and suitable for conventional television. 20 Notice I said conventional television. 21 10130 So, when one sits back and says on 22 the one hand we are being told they are doing what they 23 can and on the other hand you obviously have another 24 opinion on that, can you give me a comment on this 25 position, that in fact they are using what is available StenoTran 2176 1 and suitable at this moment, and I did say conventional 2 television. 3 10131 MR. PARADIS: I think at the table 4 you are in your right, we do have just about the 5 history of Canadian film and distribution in Canada. 6 We have discussed this question -- 7 10132 COMMISSIONER PENNEFATHER: I do have 8 to say I said "messieurs" with a touch of a wink. I am 9 sure there are other players, but of course you would 10 expect me to say that. 11 10133 MR. PARADIS: Who are members, by the 12 way. 13 10134 COMMISSIONER PENNEFATHER: Yes. 14 Thank you. 15 10135 MR. PARADIS: We now have Red Sky, 16 who is very well represented by the other gender group 17 in our association. 18 10136 I think what we are worried about and 19 why we are bringing this up and we do know that there 20 is this myth out there that Canadian broadcasters and 21 specialty or pay use Canadian films, the ones that they 22 would say are appropriate for their channels, but I 23 think that I would leave André Link and Victor to maybe 24 discuss this because they are both quite aware of what 25 the deals are with the broadcasters. Our StenoTran 2177 1 under-standing is that there is nine out of ten 2 Canadian films that could be on television that don't 3 show up on television. 4 10137 COMMISSIONER PENNEFATHER: That would 5 be appreciated. Thank you. 6 10138 MR. LINK: First of all, I must say 7 that for a Canadian distributor to find a broadcaster 8 to put the film on the air is a very difficult and 9 arduous task. It is not granted a situation that it's 10 the way that a film can get on to pay television. If 11 it is a theatrical feature it is not a problem. They 12 will play. 13 10139 It gets put on in some of the 14 specialty services, but to get on to the convention and 15 over-the-air is very difficult. It is especially 16 difficult to get on prime time. Occasionally, the 17 problem is that if you don't get the major networks to 18 carry your films, it means that the population is 19 deprived from being able to see it. 20 10140 We are selling Canadian films. Some 21 get sold in Montreal and some get sold in different 22 parts of the country on the basis of selectively 23 selling each market, but it is very difficult to sell 24 feature films, Canadian feature films unless they are a 25 locomotive to the overall system. The CBC has cut StenoTran 2178 1 back, CTV is playing very few of them, Global is not 2 playing any of them. It is a little better in Quebec. 3 I must say that the Quebec situation is better, but 4 even there there is no relation between the cost of a 5 film and the licence fees that we receive. 6 10141 Therefore, there is a great 7 difficulty in getting sufficient monies back, so that 8 we can get the system rolling. It is not at all the 9 same in other countries, like in Europe where there is 10 much more significant involvement by the broadcasters 11 and this is what we are lacking. 12 10142 COMMISSIONER PENNEFATHER: Yes. I 13 take your point. I think that is putting your finger 14 on it, the involvement of the broadcasters. 15 10143 What I read in your paper and our 16 discussion is how to arrange a new partnership which is 17 more effective for the present promotion and financing 18 of feature films. So, if we go through each of those, 19 you have said in your brief, you also say that 20 appropriate financing should be allocated towards 21 developing Canadian features, both from broadcaster 22 commitments to Canadian programming and also from 23 public or private funds that exist and will be created 24 in the future. 25 10144 Regarding the will be created in the StenoTran 2179 1 future, do you know something that we don't know? Is 2 there something there? That's kind of an open-ended 3 comment. 4 10145 MR. PARADIS: We heard this morning 5 this morning that if we take 5 per cent of the telecom 6 receipts in a year we are looking at quite a bit of 7 money. 8 10146 THE CHAIRPERSON: It's already in the 9 works. 10 10147 MR. LYON: The CRTC could buy 11 Polygram with that money. 12 10148 MR. PARADIS: I think we were looking 13 at the fact that the DTH people are coming in with new 14 funds. There are applications before the Commission 15 for new licences and, obviously, there are going to be 16 new players coming in with new money. 17 10149 As you know, the fund that was 18 created for the Canadian Television Fund, the essence 19 of the money is going to more conventional television 20 programming and there is a component for film. A lot 21 of it is for film that is made for television. 22 10150 So, we are trying to get at feature 23 films and trying to do -- we tried in our written brief 24 to show you how foreign and you know that foreign 25 broadcasters are quite heavily involved in films. Yes, StenoTran 2180 1 it is different in France and Great Britain because of 2 the history, but we do think that in Canada, as we are 3 looking at a new regulatory mode for broadcasting and 4 Canadian content that we have come to the point where 5 we have to say Canadian feature films are an important 6 component and how can we help that. 7 10151 COMMISSIONER PENNEFATHER: I gather 8 from your statement today you are saying to the 9 broadcasters that if indeed you are looking for 10 viewership feature films will draw viewers. I assume 11 that is the comment there. 12 10152 But in addition to that, you are 13 saying you want greater commitment. Are you supporting 14 the 10, 10, 10 proposal of the CFTPA or are you 15 supporting, for example, I believe it is the 7, 7, 7, 16 11 of the Directors Guild? 17 10153 MR. PARADIS: Well, anywhere between 18 7, 7, 7 and 15, 15, 15. I think you are being put 19 forward all kinds of numbers. I think that some of the 20 proposals go quite a distance from what we have in the 21 actual context now. The CAB is trying to do another 22 numbers game to say that if we did go to the 10, 10, 10 23 it would mean that they wouldn't be in the broadcasting 24 business any more. 25 10154 So, I think it is for the Commission StenoTran 2181 1 to take all these proposals and to figure out what the 2 measure is to give the broadcasters opportunities to 3 make interesting revenues, but also ensure that they 4 are contributing back to the system. 5 10155 COMMISSIONER PENNEFATHER: So, in 6 those terms too feature films as a component of 7 underrepresented categories, you want to be very 8 precise. You are talking about feature film. 9 10156 If we put an emphasis on feature film 10 in prime time are we risking the disappearance of or a 11 difficulty in placing the other kinds of 12 underrepresented programming? 13 10157 MR. PARADIS: No. I think that in 14 the case of the CFTPA they have shown that there is 15 still room in what we call prime time for Canadian 16 programming and some English broadcasters have even 17 more space left in prime time for Canadian programming 18 than others. Even if we had one Canadian feature film 19 in prime time on one broadcaster once a month, it would 20 be a big improvement on what we have right now. 21 10158 So what we are saying is that when we 22 get the feature film policy and whatever we get out of 23 the policy to develop more Canadian films. We are 24 hoping that everything will be in sync so that these 25 films that will be made -- the film industry is going StenoTran 2182 1 to try and generate about 35 theatrical-released films 2 a year. If they don't get an opportunity to be seen by 3 Canadians -- it's a circle in a way. If people see 4 these films on Canadian television, they will start 5 going to see Canadian films. 6 10159 It is a little bit the same dilemma 7 you had at the Commission 10 or 15 years ago when 8 Canadian broadcasters weren't interested in Canadian 9 content. It was more or less imposed on them and now 10 they are coming here and they say, "Hey, that's the 11 biggest thing we have ever had." So, we think we have 12 got to do the same thing with feature films right now. 13 10160 COMMISSIONER PENNEFATHER: It does 14 seem that we have been going around this circle for 15 some time and this is why I find it important that get 16 I hope a little time to ask you how Canada's feature 17 film industry is finally going to move forward. I know 18 there is the review going on. 19 10161 In this particular discussion we are 20 looking at broadcasting and features and there are two 21 pieces of the puzzle. I just want to make sure I have 22 understood your proposals, the promotion side and the 23 financing side. 24 10162 On the promotion side, you are 25 encouraging broadcasters to promote features. Should StenoTran 2183 1 this promotion time be counted as expenditures on 2 Canadian programming? Do you have any concerns about 3 that? 4 10163 MR. LINK: If I may, I believe it 5 should because anything that we would get air time to 6 create interest would benefit greatly the feature film 7 sector. It would get people in a theatre. It would 8 get them familiar with the themes of the pictures being 9 shot and so on. 10 10164 So, I believe if that is the offset 11 why not. It would certainly help us. 12 10165 COMMISSIONER PENNEFATHER: Do you 13 also agree with the proposal that promotion of Canadian 14 features not count as advertising time if the 15 broadcaster promotes a film while in theatrical 16 release, even if the broadcaster is not carrying that 17 same film? 18 10166 MR. LINK: Absolutely. 19 10167 COMMISSIONER PENNEFATHER: What about 20 the famous star system in English Canada? Ça n'existe 21 pas. Nécessairement, je veux qu'on soit clairs qu'on 22 parle des deux marchés et qu'il y a des points 23 distincts, et je pense que vous avez fait ce point-là. 24 10168 Promotion in terms of English Canada, 25 besides what we have mentioned, what more can we do? StenoTran 2184 1 What more would you suggest that the broadcasting 2 community do? 3 10169 Mr. Loewy, do you wish to answer? 4 10170 MR. LOEWY: I really think we don't 5 have enough entertainment shows in prime time which 6 originate in Canada. So, first of all, we have no 7 place to promote the films and promote the stars. The 8 shows that are going on now are mostly on TV in the 9 small regional carriers, so there is no national show 10 left dedicated to the feature film industry. They are 11 mostly American pick-ups. 12 10171 So, I don't know how we can oblige 13 the broadcasters to show more of this type of show. 14 10172 COMMISSIONER PENNEFATHER: That is 15 basically my question. Do you have a proposal for what 16 would make it worth their while, encourage them to do 17 so? 18 1535 19 10173 MR. LOEWY: No, I don't. 20 10174 COMMISSIONER PENNEFATHER: Right here 21 and now today. 22 10175 MR. LOEWY: No. It is something we 23 have wrestled without throughout our career, and 24 unfortunately we don't have a solution to that. When 25 somebody becomes famous and well-known in English StenoTran 2185 1 Canada, they invariably go to Hollywood and we lose 2 most Canadian stars. 3 10176 COMMISSIONER PENNEFATHER: We are 4 talking about feature films. 5 10177 MR. LOEWY: Yes. 6 10178 COMMISSIONER PENNEFATHER: I wanted 7 to be clear that that came with certain difficulties; 8 not movie of the week, not long form drama feature. 9 10179 MR. LOEWY: Yes. 10 10180 MR. PARADIS: If you watch Pamela 11 Wallin on the CBC, she on occasion invites people from 12 the industry to talk about the industry; either actors 13 or people that are producers. Although she seems to be 14 trying to do that more often, how many people are 15 actually watching in that kind of a specialized market 16 area? 17 10181 It is not a show that is dedicated to 18 that, in the same way that "Entertainment Tonight" 19 might be. 20 10182 I think what we are trying to say -- 21 and producers are also saying the same thing -- is that 22 we have to find a way in English Canada, and some 23 broadcaster has to come up with the genie idea of how 24 to do a show that is going to interest Canadians and 25 talk about the whole industry and how it is moving. StenoTran 2186 1 10183 COMMISSIONER PENNEFATHER: This 2 brings me to the financing side. If I am correct, you 3 have said that broadcasters should not have access to 4 the Production Fund, to the EIP or the Telefilm Fund. 5 10184 MR. PARADIS: That is right. 6 10185 COMMISSIONER PENNEFATHER: On the 7 other hand, you want to be a full-fledged partner in 8 developing Canadian content, and you expect the 9 broadcaster to be a partner in the future of feature 10 film. 11 10186 What about equity investments now? 12 Are you comfortable with, on the other hand, 13 broadcasters investing in the production of feature; 14 and if so, how would that happen? 15 10187 MR. LINK: There is no reason why 16 there should not be equity investors that get a 17 proportionate share of the returns and profits. 18 10188 I would say that it would be very 19 useful to have them as partners. 20 10189 COMMISSIONER PENNEFATHER: I think 21 Madam Wylie raised a point, in terms of the kind of 22 partnership that was suggested to us yesterday by 23 CINAR; that one of the formulae used in the industry is 24 that broadcasters can take an ownership in a production 25 equivalent to 50 percent of the value of their StenoTran 2187 1 investment, over and above licence fee requirements, 2 after full recoupment of their investment. 3 10190 Is this something that you would 4 propose as possible? 5 10191 MR. LINK: I am not sure that I would 6 like to fix the parameters. But I think when that 7 proposal was made, it reflects pretty well what 8 Telefilm's position is when they are investing. 9 10192 It could be that 50 percent of the 10 profit goes to talent and 50 percent goes to investors. 11 Maybe that is what she was referring to. 12 10193 I don't know in what context she made 13 that. 14 10194 There seems to be a traditional 15 split, either 50/50 or 60/40 in favour of either side. 16 It all depends on the project; it all depends on the 17 financial involvement, the risk. But that should be 18 negotiated freely, I would think -- unless she had 19 experiences where she felt the demands put on them were 20 too strong, and they wanted a ceiling rather than a -- 21 10195 I am not sure. 22 10196 COMMISSIONER PENNEFATHER: I am not 23 sure. Basically, this formula is mentioned in the 24 context that several people here have talked about the 25 possibility of equity investment but certain safeguards StenoTran 2188 1 coming into play or certain formulae. 2 10197 For example, such investment be 3 negotiated and be entirely separate from licence fee 4 requirements. 5 10198 Are you along the same -- 6 10199 MR. LINK: They definitely should be 7 separate and distinct from -- and licence fees should 8 reflect reality. We could give you some examples of 9 the distortion of licence fees in our country versus 10 some other situations, where the licence fees are so 11 low in Canada compared to the cost of the film that it 12 is really out of whack. 13 10200 COMMISSIONER PENNEFATHER: Did you 14 want to suggest to us any other ways? You talked about 15 the Channel 4 model; you talked about Canal Plus and 16 its history and features; the German situation. 17 10201 Do you think any of those models will 18 work for Canada? 19 10202 MR. LINK: I think that we have -- 20 and I am perhaps going to answer to you in a roundabout 21 way. 22 10203 We have a lot of talent here. We 23 have a lot of possibilities. We have established 24 ourselves in our home market and abroad -- sometimes 25 better abroad than even here. StenoTran 2189 1 10204 If the broadcasters would play a more 2 active role, whether that would be un incitatif or 3 coercion -- if you need to use that term -- we would 4 gain a lot by that. 5 10205 When a picture is finished and is 6 available and it is not shown, it is a crime. It is a 7 crime that the Canadian public cannot see the films at 8 a time when they are watching television. 9 10206 It is no use putting it on at 2 10 o'clock in the morning. It is no good putting it on in 11 the mornings. We have to reach the public. We are 12 going to build on it. 13 10207 Time and again you can see that the 14 Canadian public appreciates its drama, be it the long 15 form, be it the movies of the week. We have talent, 16 but we have to get it on the air. 17 10208 Somehow or other, we have to make the 18 broadcasters who have the means to reach the largest 19 segment of the public at the lowest cost give us this 20 window and get us air time. This is really what we are 21 asking from you: look at how you can get the 22 broadcasters -- 23 10209 It might be a quota within a quota. 24 Can you say: "If you are playing say 50 or 75 features 25 a year on your system, would you then play 10 or 15 StenoTran 2190 1 Canadian films."? Something that we would get in front 2 of the public Canadian features. 3 10210 And more and more the more important 4 films we make, I think the Canadian public -- again, it 5 will take some time, but we believe they will respond 6 favourably. 7 10211 We had some great successes in Quebec 8 recently. We had some very good successes in English 9 Canada, as well. It is a matter of entraînement. You 10 have to give the public the taste -- l'appétit vient en 11 mangeant. 12 10212 COMMISSIONER PENNEFATHER: We are 13 here to look at all the options in fact to try to move 14 that dossier forward. 15 10213 As you know, the Commission mandate 16 allows us to take certain steps, and in certain areas 17 it is up to other institutions. But in terms of what 18 we can do, looking forward from here, it is important 19 that you present whatever precise suggestions that you 20 want to make in terms of how that structure should 21 work. 22 10214 One of the other areas you touched on 23 is CBC/Radio-Canada. 24 10215 Est-ce que vous avez d'autres 25 précisions en termes de leur rôle? Je pense que StenoTran 2191 1 c'était clair que vous voulez qu'ils... il y a plus de 2 films à la télévision de Radio-Canada, il y a plus de 3 promotions. Est-ce qu'il y a un rôle spécifique que 4 vous voulez mentionner? 5 10216 MR. LOEWY: First of all, I just want 6 to add some words to the previous question. 7 10217 We have been discussing for years and 8 years what the role of the Canadian broadcaster should 9 be. I think we have come away empty-handed each time, 10 because the broadcasters always came up with all kinds 11 of excuses, pleading poverty. In the meantime, they 12 are buying up more networks and their profits are 13 really growing. 14 10218 Yet the model in the U.K. and in 15 France is expanding. I think at the last CRTC 16 hearings, Canal Plus was really actively involved in 17 big licence fees and investment in local French films. 18 Today, we have TF-1, France Deux and France Trois who 19 are investing big money, both for licence and 20 investments. The same thing with the BBC and Channel 21 4. 22 10219 Here, we are still at the stage of 23 talking about it. 24 10220 With respect to your question about 25 the CBC, being here since this morning, everybody is StenoTran 2192 1 finding reasons to attack the poor CBC on all kinds of 2 misdeeds and bad behaviour. 3 10221 Even though the CBC is paying very 4 low licence fees, at least they are buying films -- 5 which is more than can be said about any of the private 6 broadcasters. 7 10222 What we would like to see more of is 8 more promotional efforts on their part, which does not 9 cost any money. It is not something where they have to 10 come back to the government and ask for additional 11 funds. They can simply get more involved in the 12 promotion of Canadian films. 13 10223 We have a bit of that in Quebec with 14 some broadcasters, and I think we can expand on that. 15 It would be an invaluable tool to have. 16 10224 COMMISSIONER PENNEFATHER: Thank you 17 for that. 18 10225 On the matter of North American 19 rights, we have had suggestions on how to deal with 20 this, ranging from doing nothing, to let the market 21 decide, to taking U.S. services off eligible lists. 22 10226 In fact, I think that is the CFTPA 23 point in their submission. 24 10227 We are of course, as you noted, aware 25 of the history. I was wondering if you had any other StenoTran 2193 1 comments on that area. 2 10228 MR. PARADIS: I am going to ask Dan 3 Lyon to talk about that. 4 10229 MR. LYON: The thing that is very 5 important for the Commission to note is that it is very 6 difficult for distributors to police the situation 7 where a U.S. service coming into Canada may be 8 broadcasting a program which has already been bought 9 for Canadian broadcast, originating in Canada, by a 10 Canadian distributor. 11 10230 Most of the companies have eagle-eyed 12 people who will scan the guides and hopefully catch a 13 lot of the problems. In some cases, we do get good 14 cooperation. 15 10231 It is a very frustrating situation to 16 imagine that, as bad as it is now, it is only going to 17 get worse with the proliferation of satellite signals 18 and Internet broadcasting, and whatever else is coming 19 down the pike for us. 20 10232 COMMISSIONER PENNEFATHER: Thank you. 21 I was going to ask you as a group what you saw 22 vis-à-vis digital carriage and digital technology in 23 the business of features. 24 10233 I have one last question. I can't 25 resist asking it. StenoTran 2194 1 10234 Another discussion that has been had 2 frequently involves a parallel process to this one; and 3 that is the identifiable Canadian product. 4 10235 In looking at this table and the 5 experience you have had, when you read proposals of 6 what is Canadian, basic Canadian, enhanced basic, it is 7 distinguishable Canadian. 8 10236 To add to our record, what is your 9 definition of a truly Canadian feature film? 10 10237 MR. PARADIS: I think you missed 11 "super Canadian". 12 10238 COMMISSIONER PENNEFATHER: Sorry. 13 10239 MR. LOEWY: I believe that a film 14 that is done by Canadians is a Canadian film. It is 15 not necessarily treating a typically Canadian situation 16 that is Canadian. I think it is what we come up with 17 as a story to tell. But of course it should not be 18 something where we are disguising a Canadian city for 19 Washington, or whatever. 20 10240 I think we have to give the freedom 21 to our creators to tackle any subjects that they want. 22 But necessarily it has to have the Canadian elements in 23 there in proportion. 24 10241 One of the biggest things that I had 25 the privilege of participating in was "Meatballs". StenoTran 2195 1 "Meatballs" was a Canadian story; it was summer camp. 2 Yes, we had Bill Murray, who was an American actor. 3 But it was a Canadian film. 4 10242 I think we have to be open-minded on 5 that. Certainly we should resist the type of disguised 6 foreign productions masquerading as Canadian. But I 7 think Canadians should have the choice of making films 8 that they feel they should bring to the screen. 9 10243 MR. LYON: I believe during this 10 proceeding you did hear a few people speak about 11 official co-productions as well. We would like to see 12 certainly increasing emphasis on those productions as 13 Canadian productions -- which they are. 14 10244 COMMISSIONER PENNEFATHER: When we 15 are told by some that a framework which encourages 16 export of cultural products, including feature films, 17 is contrary to one which would encourage more 18 indigenous Canadian product, how do you respond to 19 that? 20 10245 How do we do both at once? 21 10246 MR. PARADIS: I think you are raising 22 two issues. 23 10247 I sit on the board of the Canadian 24 Television Fund, and I am also taking part in the 25 policy review for the film. StenoTran 2196 1 10248 In the Television Fund, the way the 2 board is going, the requirements we are going to have 3 for what is Canadian or not Canadian are going to 4 require more criteria of Canada. But that is in 5 television. 6 10249 In television, I think the feeling of 7 the people on the board is that that is what we are in 8 the business of doing: Canadian productions. It does 9 not stop anybody from doing other types of productions. 10 But if they want to have access to public money, they 11 have to do productions that reflect Canada and that are 12 Canadian. 13 10250 For feature film, we are at the point 14 where we are now discussing what the criteria might be. 15 There is an ongoing discussion on what the criteria 16 would be, not necessarily the same as in television. 17 Feature film is not the same as conventional 18 television. 19 10251 So until we know what it is finally 20 going to look like, we don't really have a hard line 21 opinion on it. 22 10252 COMMISSIONER PENNEFATHER: An 23 interesting comment. We are discussing feature films 24 on conventional television, so I would suggest that the 25 two not be kept too far apart. StenoTran 2197 1 10253 MR. PARADIS: They probably won't be 2 since they both have to report to the same minister. 3 10254 COMMISSIONER PENNEFATHER: Thank you, 4 gentlemen. 5 10255 Thank you, Madam Chair. 6 10256 THE CHAIRPERSON: Thank you, 7 gentlemen. 8 10257 We will now take a 15-minute break 9 and come back at 4:05. 10 10258 Nous reprenderons à quatre heure 11 cinque. 12 --- Short recess at / Courte suspension à 1550 13 --- Upon resuming at / Reprise à 1606 14 10259 THE CHAIRPERSON: Good afternoon. 15 10260 Madam Secretary, would you invite the 16 next participant, please. 17 10261 MS BÉNARD: Thank you, Madam Chair. 18 10262 The next presentation will be by the 19 Directors Guild of Canada. I would invite Mr. King to 20 introduce his colleagues. 21 PRESENTATION / PRÉSENTATION 22 10263 MR. KING: Thank you. 23 10264 Good afternoon, Madam Chairperson and 24 members of the Commission. 25 10265 My name is Allan King and I am StenoTran 2198 1 President of the Directors Guild of Canada. With me is 2 Pamela Brand, our National Executive Director, and 3 Peter Grant, our regulatory counsel. 4 10266 As a labour organization representing 5 key creative and logistical personnel in the film and 6 television industries in Canada, the Directors Guild 7 has a very special interest in these hearings. 8 10267 The issues being addressed by the 9 Commission deal with the fundamental structure of the 10 television industry in Canada. In our written 11 submission, we have chosen to focus on the lack of 12 sufficient financial and scheduling support give to 13 Canadian entertainment programs by Canada's private 14 English language broadcasters. 15 10268 Over the last decade, the Commission 16 has properly focused on the issue of the 17 under-represented programming, and why it is still a 18 scarce commodity on our TV screens, compared with the 19 dominance of U.S. drama in prime time. 20 10269 The Commission has also developed a 21 number of expenditure and scheduling rules to address 22 this issue. We applaud the Commission for these steps 23 and for focusing your attention on the issue in this 24 hearing. 25 10270 We are not here to recommend a StenoTran 2199 1 wholesale change in regulatory approach. Our 2 suggestion is that you work with the tools you already 3 have, the expenditure and scheduling rules, and make 4 them more effective by focusing them on the central 5 issue, the need for more first-run Canadian 6 entertainment programs in prime time. 7 10271 In particular the Directors Guild has 8 proposed the adoption of what we call the "7 & 7 from 7 9 to 11 solution". Allow me to take a minute to describe 10 the proposal for you. This approach would establish a 11 regulatory benchmark for private television stations of 12 spending a minimum of 7 per cent of broadcast revenues 13 on Canadian entertainment programming per year and 14 airing a minimum of seven hours of first-run Canadian 15 entertainment programming from the hours of 7:00 to 16 11:00 p.m. each week. 17 10272 In our submission to the Commission 18 last year on the establishment of new networks, we 19 urged that the CRTC set a benchmark for private TV 20 expenditures on Canadian entertainment programs of 7 21 per cent of gross advertising revenues. In our written 22 submission for these hearings, we have taken our 23 suggestion a step further by adding a scheduling 24 component to it. 25 10273 When the CAB appeared before you, StenoTran 2200 1 they criticized our proposal, arguing that Canadian 2 drama loses money and they should be given more 3 incentives to schedule it. 4 10274 But broadcasting in Canada is not 5 just a business that anyone can enter. Broadcasting is 6 a privilege and a valuable franchise with all kinds of 7 protections, including barriers to entry, the benefits 8 of the simultaneous substitution rule and the like. 9 And with that franchise comes an obligation to do 10 certain things, even if those particular projects lose 11 money on an individual basis. 12 10275 The CAB talked about doing more for 13 Canadian entertainment programming to increase its 14 viewership, but they didn't talk about spending more 15 money on it, which is surely the real test of 16 commitment. 17 10276 The licence fees paid by Canada's 18 private broadcasters as a percentage of the budget for 19 Canadian drama are but a fraction of what private 20 broadcasters in other countries pay for their 21 indigenous drama. We are the only country in the world 22 which pays higher licence fees for U.S. drama than for 23 its own drama. 24 10277 The reason why a tightened 25 expenditure rule is required is very simply because it StenoTran 2201 1 is obvious that in the absence of such a rule, 2 broadcasters will reduce rather than increase their 3 real expenditures on Canadian drama. 4 10278 Yesterday the CAB released a study 5 purporting to show that the Directors Guild proposal 6 would result in a net loss to English language 7 broadcasters of $50 million or more per year. 8 10279 We have already identified a number 9 of major flaws in the CAB study and we consider it 10 wildly exaggerated and based upon faulty assumptions. 11 It also fails to note that English language 12 broadcasters actually increased their profits by $38 13 million in 1997 while reducing their 7, 8 and 9 14 Canadian expenditures. 15 10280 We are preparing a detailed report 16 rebutting the CAB study which we will file with you in 17 due course. 18 10281 I will now ask Pamela Brand to 19 address a different issue. 20 10282 MS BRAND: One aspect of the 21 Directors Guild's brief that I would like to speak 22 about specifically concerns the ability of broadcasters 23 to claim the licence fee program top-up moneys coming 24 from the Canadian Television Fund as if they had spent 25 it themselves. StenoTran 2202 1 10283 On September 17 the Guild published a 2 study of the implications of the CRTC policy allowing 3 the top-up credit. We filed the study with the 4 Commission last week and we have included a copy with 5 our oral presentation today. 6 10284 The study reached some disturbing 7 conclusions. Although in 1996 and 1997 relatively few 8 broadcasters claimed the benefit of the top-up in their 9 financial returns, the increase in the LFP funding will 10 make it possible for private broadcasters to claim 11 millions of dollars of LFP money annually as if they 12 had spent the money themselves. 13 10285 In fact, just by reason of the LFP 14 grants in the year ended August 31, 1998, English 15 language private broadcasters will be able to claim on 16 their future returns up to $24 million in LFP grants as 17 part of their Canadian programming expenditures. This 18 cannot be supported. 19 10286 We urge the Commission to ensure that 20 any solution that it decides to adopt in order to 21 increase the supply of under-represented Canadian 22 programs does not allow private broadcasters to avoid 23 their responsibilities by enabling them to claim LFP 24 top-up money as if they had spent it themselves. 25 10287 MR. KING: Thank you, Pamela. StenoTran 2203 1 10288 This brings me to another point that 2 I would like to address, namely the issue of 3 broadcaster access to Canada's public production funds. 4 In our written submission to you, we urged that the 5 Commission maintain restrictions on broadcasters' 6 ability to access public funding. 7 10289 The emergence of a strong and 8 globally competitive independent production sector is 9 one of Canada's most notable success stories. Much of 10 it is due to the structural support provided by the 11 Commission and by Telefilm Canada. The edifice is a 12 remarkable tribute to intelligent government policy. 13 It took a generation to build. 14 10290 Permit me a moment of personal 15 reflection on that earlier time. Having spent a decade 16 building a successful independent documentary film 17 studio in London in the sixties, I returned to home to 18 Canada in its centennial year, 1967, hoping to do the 19 same here. 20 10291 It was a desert here then for 21 Canadian independent producers. The CBC did everything 22 in-house and the very few Canadian entertainment 23 programs found on the schedules of private broadcasters 24 were also self-produced. It was an environment that 25 stifled diversity. StenoTran 2204 1 10292 We have come a long way from that 2 time. We now expect private broadcasters to support 3 independent production of Canadian entertainment 4 programs and we would be remiss if we did not single 5 out a few broadcasters to congratulate them for their 6 recent initiatives. 7 10293 The Guild is very supportive of the 8 model being used by the Craigs in Alberta to help 9 finance long-form Canadian drama with expenditures far 10 in excess of our proposed 7 per cent rule. 11 10294 The Guild also wants to commend 12 CTV/Baton for its recent initiatives in increasing its 13 quantity of distinctive Canadian drama in prime time. 14 We are eager to see Mr. Fecan's vision come to life on 15 the CTRV schedule and we look forward to its 16 elaboration at the CTV renewal hearing next year. 17 10295 In sum, the Directors Guild urges the 18 Commission to continue its good work in building the 19 remarkably diverse structure that is the Canadian 20 broadcasting system. We respectfully urge you to move 21 forward to levels of Canadian content comparable to 22 jurisdictions such as Britain, France and Germany. 23 10296 To this end, we urge the adoption of 24 a benchmark similar to the "7 & 7 from 7 to 11" 25 solution that we have proposed. This will ensure that StenoTran 2205 1 our television system offers Canadians the amount of 2 distinctive Canadian entertainment programming that our 3 broadcasting system needs and deserves. 4 10297 Thank you. That concludes our 5 presentation. 6 10298 THE CHAIRPERSON: Thank you Ms Brand, 7 Mr. King. 8 10299 Commissioner McKendry. 9 10300 COMMISSIONER McKENDRY: Thank you, 10 Madam Chair. 11 10301 Let me begin by talking to you about 12 your September 17 study on the CTCPF Licence Fee 13 Program and Canadian Program Expenditure Commitments. 14 Let me note that in your accompanying press release for 15 that, and as an aside, let me say I am rather taken in 16 this hearing with the number of press releases that are 17 being issued by yourselves and by the CAB. It seems 18 that there are almost two hearings going on, the one we 19 are doing in this room and the one that is going on in 20 the media. 21 10302 I noticed that there was an article 22 this morning in the Globe and Mail where CAB has filed 23 more data. I want to come back to this in a few 24 minutes, although sometimes when I read the press 25 clippings and I see the word tonnage, I'm not sure StenoTran 2206 1 whether we are talking about Canadian content or a 2 whale hunt. 3 10303 You state in the accompanying press 4 release with your study that our decision, Public 5 Notice 1994-10, to allow private broadcasters to claim 6 a portion of the licence fee contributed by the fund as 7 eligible Canadian program expenditures "undermines the 8 whole integrity of the broadcasting system". 9 10304 It's a pretty serious allegation so I 10 want to make sure that I understand how you came to 11 your conclusions. 12 10305 Let me begin by turning you to page 5 13 of the study. There you state about the third 14 paragraph, half way through the third paragraph. Let 15 me quote: 16 "Projects can now quality for 17 support even when broadcasters 18 contribute licence fees that are 19 as little as 15% of the program 20 budget. However, the licence 21 fee top-up can now increase this 22 to as much as 45% of the 23 budget." 24 10306 How did you derive the figure of 48 25 per cent? StenoTran 2207 1 10307 MS BRAND: Actually all of these 2 figures were derived from the CRTC studies which is 3 included with the package, but the figure 45 per cent, 4 I'm going to let Peter Grant answer that question. 5 10308 MR. GRANT: The 45 per cent is 6 included in the LFP top-up guidelines, Commissioner 7 McKendry. It is the maximum amount of the budget that 8 is available for certain regional productions. 9 10309 For national, non-regional 10 productions though of drama, the maximum top-up would 11 be about 30, 35 per cent of the budget. This is a 12 comment about the bonus that could apply in some cases. 13 10310 I think though that if you take a 14 look at the numbers for the most recent year past, 15 which I think are included in attachment 6, the actual 16 broadcaster cash in all projects from private 17 broadcasters was $26.3 million and that generated 18 licence fee top-up of $24.4 million. 19 10311 The ratio in the last year overall is 20 about one to one, give or take, which again is much 21 more than it was originally envisaged. Originally the 22 bonus would have been 43 per cent. It appears now the 23 bonus in the last year would amount to about 100 per 24 cent. 25 10312 There could be some specific projects StenoTran 2208 1 in which the bonus could work out to 200 per cent 2 though. They would have to fit within the narrow 3 definitions for those projects in the LFP top-up 4 guidelines. 5 10313 COMMISSIONER McKENDRY: How many 6 projects would the 200 per cent number apply to? 7 10314 MR. GRANT: Well, it would be 8 obviously a small number because there have been 9 relatively few regional projects until recently that 10 have even gotten into the LFP. That's a new 11 development. 12 10315 That is the new guidelines. The LFP 13 does allow up to 45 per cent in those projects, so to 14 the extent those increase over time, they will show up 15 more. Right now the most recent year shows that the 16 bonus is about 100 per cent. 17 10316 COMMISSIONER McKENDRY: Do you have 18 an answer in terms of how many of the projects would be 19 as much as 200 per cent? 20 10317 MR. GRANT: No, I don't have that for 21 the 1998 year. No. 22 10318 COMMISSIONER McKENDRY: Do you have 23 it for the previous years or was it not applicable in 24 the previous years? 25 10319 MR. GRANT: No. This is a policy StenoTran 2209 1 that has been changed in the last year. 2 10320 COMMISSIONER McKENDRY: Perhaps we 3 could just to understand that policy take a look at 4 decision 94-10 which you included as attachment 2 to 5 your study. We could look at the section headed "The 6 Mechanism" which is 2(h). 7 10321 I would like you to relate the 200 8 per cent factor that you now say is part of the fund to 9 what's set out there. What it says there is: 10 "-- under-represented 11 programming must obtain licence 12 fees of not less than 15% of the 13 total budget from Canadian 14 licensees." 15 10322 It goes on: 16 "For the purpose of meeting 17 their required Canadian program 18 expenditures as expressed --" 19 10323 Sorry. Let me just back up one 20 sentence. 21 "The production fund shall 22 provide payments representing 23 30% of the licence fees." 24 10324 How do we get up to 200 per cent by 25 relating what's in this section of the decision to what StenoTran 2210 1 you just told me. 2 10325 MR. GRANT: Well, you have raised 3 exactly the point, I think, that is made, Commissioner 4 McKendry. 5 10326 If you take a look at those two 6 numbers, and I am focusing particularly on -- take a 7 look at the top line in that paragraph which says the 8 licence fee shall be not less than 35 per cent. Then 9 it says: 10 "The production fund shall 11 provide payments representing 12 30% of licence fees." 13 10327 Remember, the 30 is of the 35. 14 That's 10.5. So the practical result back in 1994, and 15 this was all understood, was that a broadcaster would 16 actually put 24.5 per cent of his real cash and the 17 extra 10.5 would bring the matter up to 35 per cent and 18 that works out because 30 per cent of the 35 per cent 19 would be treated as if he had spent it himself. 20 10328 That was the understanding, I think, 21 that the Commission had as to how it would work in 22 1994. A year and a half later the guidelines for the 23 fund were handed over to the Heritage Department and in 24 fact the Heritage Department added $50 million to the 25 budget for LFP. StenoTran 2211 1 10329 Those rules became changed. It no 2 longer was required to have 24.5 per cent. It steadily 3 reduced to 20 and, in fact, if you take a look at the 4 average contribution of broadcasters to LFP projects, 5 as disclosed in the LFP document in attachment 6, it's 6 barely 15 per cent. 7 10330 The expectation in 1994, it seems to 8 me, has been not met. The broadcasters are not putting 9 in 24.5. They are now putting in about 15. In certain 10 projects they could actually put in less and they are 11 getting more top-up benefit than was initially 12 envisaged. It was originally thought that the top-up 13 would take them from 24.5 up to 35. That's a 43 per 14 cent bonus. 15 10331 You now see in the 1998 numbers that 16 they are getting closer to a 100 per cent bonus. It's 17 a combination of those two features that have all 18 happened since 1994, and I have to say were nothing to 19 do with the Commission. This was just the rules being 20 changed and more money being put in and so forth. 21 10332 COMMISSIONER McKENDRY: Now, you say 22 this has nothing to do with the Commission. Perhaps 23 you can help me here because I look at the preamble to 24 decision 94-10, in the fourth paragraph, and I will 25 quote: StenoTran 2212 1 "Although the LFP Guidelines are 2 now administered by the CTCPF, 3 the Commission continues to have 4 exclusive jurisdiction over the 5 funding mechanism, including the 6 obligation of distribution 7 undertakings to contribute to 8 the fund, and the extent to 9 which private broadcasters can 10 claim LFP contributions as 11 eligible 'Canadian expenditures' 12 under their licence conditions." 13 10333 MR. GRANT: That's right. 14 10334 COMMISSIONER McKENDRY: Are you 15 telling me that the fund has the power to make its own 16 rules and guidelines and if we happen to notice that 17 one of those rules or guidelines isn't consistent with 18 what we would like to have done, we have the 19 jurisdiction to change it. 20 10335 Is that what's happening? 21 10336 MR. GRANT: Yes. I mean the way a 22 broadcaster would read down at "The Mechanism" section, 23 they would look at that third paragraph. It just 24 says|: 25 "-- for the purpose of meeting StenoTran 2213 1 their ... program expenditures 2 ... private broadcasters will be 3 permitted to claim full amount 4 of the licence fee, including 5 that portion contributed by the 6 fund --" 7 10337 They will say well, then, the 8 Commission didn't put any rules there. The rules as to 9 how much we put in and what the bonus is, that's now up 10 to Heritage. They have changed since 1994. 11 1625 12 10338 Now, if you were to, as a Commission, 13 say -- just announce as a policy announcement that our 14 position is that the top-up was never intended to be 15 more than 43 per cent -- that was the original idea -- 16 and clarified that, that would certainly go a long way 17 to eliminating the problem. It wouldn't go the full 18 way. You still have this much larger amount of money 19 because they are including not just the amount of money 20 that would have been in the Production Fund by virtue 21 of cable contributions, which again was all that was 22 thought of in 1994, but they are also getting credit 23 for the added money coming from Heritage, which was not 24 in the Fund in 1994. 25 10339 So, as a lawyer, I would take the StenoTran 2214 1 view that this is a matter that the left hand, 2 obviously, should know what the right hand is doing, 3 but it is within the power of the Commission to address 4 this by clarifying exactly what they intended. 5 10340 COMMISSIONER McKENDRY: And the Fund 6 does not need our permission or approval to make the 7 changes that you have just described in light of the 8 mandate that's given to us here to have jurisdiction 9 over these matters? 10 10341 MR. GRANT: Yes. Now, my 11 understanding is that in fact the Commission addressed 12 a letter to the Fund about this issue a year or so ago 13 asking whether they had a position -- with all these 14 changes, whether there would be a need to revisit this 15 policy and this is mentioned in the backgrounder issued 16 by the Guild. The Fund set up a subcommittee to review 17 it, but deadlocked on the matter and was not able to 18 come up with a resolution or a recommendation to the 19 Commission. So, I take it from that that this is 20 really now fully in the hands of the Commission to deal 21 with. 22 10342 COMMISSIONER McKENDRY: And just to 23 summarize this point, we have rules at the Fund that 24 are in conflict with this section of our decision. 25 10343 MR. GRANT: With the expectation, StenoTran 2215 1 yes, in this decision. 2 10344 COMMISSIONER McKENDRY: It's more 3 than an expectation, it's a requirement or a 4 regulation, isn't it? 5 10345 MR. GRANT: It's interesting, 6 actually. This was issued as a policy statement and it 7 was never implemented by way of a reference in licence 8 conditions or regulations, but the way it has been 9 administered so far has simply been that the Commission 10 has put in a line item in the Annual Report called 11 Cable Production Fund credit. As I understand it, of 12 course, if broadcasters choose to, on their annual 13 return, provide the information as to what their own 14 projects got as licence fee program top-up, that will 15 then be entered into that return and, of course, will 16 then count towards their Canadian program expenditures. 17 10346 Now, there is an interesting 18 question: What year do they get to claim it and who 19 gets to claim it? You will have some broadcasters 20 trigger it, but then resell the project to other 21 broadcasters. So, I don't think that has been 22 determined. 23 10347 The other issue is that it would seem 24 more logical that you would claim it, not at the time 25 that the licence fee top-up money is given to the StenoTran 2216 1 product but, rather, at the time the actual program, as 2 made, shows up on the schedule, because the Commission 3 have accounting rules. They are in Public Notice 4 1993-93 that say you can only account for your 5 expenditures on licence fees for drama programs at the 6 time they actually are amortized over the broadcast 7 schedule. So, you can't count them earlier, you have 8 to count them in the year that the broadcast is run. 9 10348 Most of these programs that we are 10 talking about are only starting to run now. In fact 11 the ones that were financed from the 1998 money we are 12 talking about, the $24 million, some of those may not 13 even run and start to be showing up in returns until 14 the fiscal year 1999-2000. 15 10349 COMMISSIONER McKENDRY: I want to ask 16 you about a follow-up on that, but again let me be 17 clear that I understand this. The fund is doing 18 something that the Commission didn't intend it to do by 19 virtue or based on decision 1994-10? 20 10350 MR. GRANT: Well, the Commission 21 basically delegated the decision-making on the ratios 22 of licence fees and so forth for various projects to 23 the Fund. I don't know that the Commission has 24 disapproved it or approved it. It hardly matters. The 25 issue here is: How do you want to handle it for the StenoTran 2217 1 purposes of your internal accounting? How do 2 broadcasters get a claim? That's uniquely a CRTC 3 issue. 4 10351 The Fund doesn't have jurisdiction 5 over how you decide how a broadcaster will get credit. 6 So, you could very well find no problem with how the 7 Fund is proceeding, but still say, in terms of giving 8 credit to a broadcaster for this top-up, it should work 9 within these rules back in 1994 or, as the Guild is 10 suggesting, frankly, over time remove them. 11 10352 COMMISSIONER McKENDRY: With respect 12 to the 45 per cent number that was on page 5 that 13 started off this discussion, when I first looked at it, 14 I thought there was a possibility you had gone to 15 subsection (h) and added together the 15 per cent 16 that's in there with the 30 per cent. So, that is not 17 the case. That's what you are telling me. You have 18 derived the 45 per cent number by looking at the actual 19 expenditures? 20 10353 MR. GRANT: No, actually looking at 21 the LFP top-up and guidelines, as issued by the CTF, 22 which say that in certain projects they will permit a 23 15 per cent trigger to generate a top-up of another 30 24 per cent. 25 10354 COMMISSIONER McKENDRY: So, the StenoTran 2218 1 number of $24 million, as I recall -- I think it's 2 $24.2 million -- 3 10355 MR. GRANT: Yes. 4 10356 COMMISSIONER McKENDRY: -- that is a 5 calculation that flows from looking at the rules at the 6 Fund, as opposed to what actually happened? 7 10357 MR. GRANT: That's right. No. No, 8 the $24 million is what actually happened last year. 9 Those are the reported numbers of licence fee top-up 10 credits for projects that were licensed by 11 English-language Canadian private broadcasters. 12 10358 COMMISSIONER McKENDRY: And the 45 13 per cent is what's possible under the rules? 14 10359 MR. GRANT: Yes. 15 10360 COMMISSIONER McKENDRY: Good. 16 10361 You mentioned that some of this money 17 has not been claimed. My question is: Why was it left 18 on the table? 19 10362 MR. GRANT: I think the answer is a 20 number of answers. The key one, I think, is that it 21 would normally be claimed at the time that the program 22 is broadcast. So, there is a regulatory lag then of a 23 year or two because the programs are financed and the 24 commitment letter is issued, but a project may not get 25 concluded and then be put on the air for a year or so. StenoTran 2219 1 That's one explanation. 2 10363 Another explanation, I am sure, is 3 that some broadcasters may not have felt it necessary 4 to do it, they didn't feel -- or their accounting 5 department hadn't picked up on it. There is a variety 6 of possible reasons. I must say I don't see anything 7 turns on that because there is nothing to stop them 8 from going back and restating those returns or picking 9 them up in the future years when the programs are 10 broadcast. 11 10364 The key, of course, moment for a 12 broadcaster to concern himself with this is actually at 13 the renewal time because at that point the Commission 14 will ask on the renewal form, "Have you complied with 15 all your licence conditions", and one of the licence 16 conditions that's looked at is the Canadian program 17 expenditures rule. It would be possible then for a 18 broadcaster to say, "Well, I know you might think in my 19 returns that I didn't quite qualify, but now I am 20 putting in all my LFP top-up and you will see I very 21 easily qualify." 22 10365 COMMISSIONER McKENDRY: You mentioned 23 this earlier, but just clarify for this for me. What 24 is the basis for allowing a retroactive claim to be 25 made? StenoTran 2220 1 10366 MR. GRANT: Retroactive or -- I'm 2 sorry? 3 10367 COMMISSIONER McKENDRY: Well, 4 refiling one's form or claim. 5 10368 MR. GRANT: Just basically refiling 6 to -- I suppose you would file it just to correct what 7 you would say was an error in your return. It would 8 probably then show that you over-spent on Canadian 9 programming that year. Then you would carry that 10 forward to average out for the licence renewal period. 11 10369 COMMISSIONER McKENDRY: So that 12 broadcasters who are paying careful attention to this 13 hearing will be examining their returns and considering 14 whether or not they should correct them, I assume. 15 10370 Let me leave the study now then and 16 ask you some other questions. 17 10371 Actually, let me ask you one more 18 question about it before I do that. In Decision 19 1994-10 we were, it struck me when I read it, fairly 20 clear that the policy set out or the mechanism set out 21 in subsection (h) had -- we were quite clear about what 22 we were trying to do. We were trying to make it 23 possible to do more programming in the 24 under-represented areas. There was an explicit policy 25 objective attached to it. I take it it's your view StenoTran 2221 1 that this mechanism is no longer appropriate for 2 achieving that policy objective that we set out in 3 1994-10. 4 10372 MR. GRANT: I think that's true and I 5 guess there is two points to be made about that. One 6 is that if you examine the applications that were filed 7 for new licence applications in the markets where the 8 Commission issued new licences in the last few years, 9 which is to say Calgary, Edmonton, Vancouver and 10 Montreal, the financial projections filed by all of the 11 applicants failed to make any account of this 12 particular mechanism. You can tell whether they would 13 have because it would have dropped to the bottom line 14 as a credit against -- a revenue item coming, as it 15 were, a fictional revenue item, but adjusting their 16 Canadian programming. 17 10373 So, their projected profits and 18 losses, as presented to the Commission, did not require 19 any incentive from this program. So, for it now to be 20 claimed for those licensees, it seems to me, is 21 something of a windfall for them. Now, there might be 22 a valid reason to allow them to have a windfall if 23 there is some real new things put on the table, but 24 most of the new licensees made very important 25 commitments to Canadian content. They had budgeted for StenoTran 2222 1 them, they have allowed themselves a reasonable profit. 2 It seems to me in those situations it's hard to argue 3 why there should be this credit. 4 10374 For existing stations again, those 5 that were renewed recently, at least those renewal 6 applications I have looked at, again did not include 7 any reference to the LFP top-up. They just projected 8 their revenues and expenses in the normal way and 9 showed a reasonable profit line. So, again that's why 10 it looks like this top-up would be really a windfall. 11 10375 COMMISSIONER McKENDRY: I will now 12 leave that area. 13 10376 Let me ask you a question. I think I 14 mentioned earlier the war of press releases here that 15 is going on and one of the early salvos was a media 16 release from the Canadian Association of Broadcasters 17 on September the 17th. They took you to task or they 18 took the Guild to task in it. They said that you, and 19 I quote, "called for increased regulatory burden on 20 broadcasters". They went on to suggest that you had 21 taken the wrong focus stating, "We should focus on 22 policies that will ensure results, more viewers 23 choosing to watch quality programs." Do you agree that 24 your recommendations are contrary to the concept of 25 more viewers watching quality Canadian programs? StenoTran 2223 1 10377 MR. KING: That our proposals...? 2 10378 COMMISSIONER McKENDRY: Are contrary 3 to the idea of more Canadians watching quality Canadian 4 programs. How do you relate your proposals to 5 Canadians watching quality Canadian programs? 6 10379 MR. KING: Fundamentally, the real 7 need is for more money to be spent on Canadian 8 programs, particularly drama. If you are trying to 9 attract an audience, you need the best production value 10 as possible, the best quality of work, and that costs 11 money. We are competing against the best-funded drama 12 in the world coming from the States, which has a market 13 ten times ours. Therefore, if you are going to attract 14 audiences, you must spend money in order to put values 15 on the screen. There is your Crop Study, for example, 16 which suggests that the edge that audiences seem to 17 feel on American programs are particularly around this 18 area. So, that's a major thing that has to be dealt 19 with. 20 10380 Furthermore, if there is not space on 21 the screen, if there is not time on the screen, it's 22 very, very difficult for audiences to get to the 23 Canadian programs. At the moment, we are at the level 24 of three, three and a half hours of Canadian 25 entertainment in prime time a week. That's on the StenoTran 2224 1 order of 10 or 15 per cent of the schedule. We are 2 suggesting that it would be reasonable to have 3 something on the order of an hour a night. That would 4 be a quarter of the schedule for Canadian programming, 5 but it would have to be at a quality that will attract 6 audiences. 7 10381 COMMISSIONER McKENDRY: That brings 8 us to today's press article on the subject in the Globe 9 and Mail where it says, "CAB chides proposals made to 10 the CRTC". You mentioned more money. According to 11 this article, CAB now has a study from 12 PricewaterhouseCoopers that shows if your suggestions 13 are implemented, they won't have any money left or they 14 won't have any profits left. 15 10382 The article sets out two reasons for 16 this: one, they can't get as much for a commercial or 17 an advertisement for a Canadian program as they can for 18 an American program and, secondly, Canadian 19 programming, according to PricewaterhouseCoopers, costs 20 a lot more to make than American programming. So, if 21 you get your way, according to PricewaterhouseCoopers 22 and the CAB, that's it, they don't have an profits 23 left. Have you had an opportunity to look at the 24 PricewaterhouseCoopers study? 25 10383 MR. KING: Yes, we have and one thing StenoTran 2225 1 we have concluded is it will take a good deal of time 2 and careful examination to explore all the implications 3 proposed or suggested in that and others following from 4 it. We do find a number of erroneous assumptions in it 5 that exaggerate the results considerably. We would 6 argue with a number of things. Well-made Canadian 7 programs, particularly distinctively Canadian programs 8 are in fact drawing very high advertising revenues. 9 "Due South", for example, has a very, very strong pull 10 for audiences. 11 10384 The advertising sold in advance on a 12 program like "Power Play" will show a profit for the 13 broadcaster. I think it's worthwhile for us to do and 14 we would like to do a very careful examination of the 15 suggestions and particularly of the costing of what we 16 are proposing and we would like to undertake that. 17 10385 I would like to invite Peter Grant to 18 expand on that a little. 19 10386 MR. GRANT: The Directors Guild was 20 just given a fax of that study late yesterday 21 afternoon, Commissioner McKendry -- 22 10387 COMMISSIONER McKENDRY: You are well 23 ahead of us. 24 10388 MR. GRANT: -- so it would take some 25 time to analyze it, but a few points do jump out that StenoTran 2226 1 are quite flawed. The basic study assumes that 2 essentially two hours of U.S. prime time drama will be 3 displaced and replaced then by two new hours of 4 Canadian. 5 10389 Of course, what that fails to take 6 into account is that it is quite logical that it will 7 be Canadian reruns of 7, 8 and 9 that will end up being 8 displaced, not U.S. programs, because many of the 9 stations that would be affected by the Directors Guild 10 proposal are already required by the Commission to 11 offer six hours of 7, 8 and 9 this year, rising to 12 seven in a year or two. 13 10390 So, there will be seven hours over 14 the evening hours of 7, 8 and 9, but the problem is 15 some of it -- much of it may not be first run. So, 16 that would be the programming, it seems to us, that 17 would be logically replaced with first run and first 18 run will always get a higher audience than rerun and it 19 won't displace any U.S. programs because those 20 broadcasters have already made room for Canadian 21 programs 7, 8 and 9 in the evening hours. 22 10391 Now, there will be readjustments of 23 the program schedule required and that's the other 24 point. The study appears to suggest it's a flash cut 25 of impacting as if it occurred today, which means they StenoTran 2227 1 can't readjust and cut back on already made purchases. 2 There is a number of factors in there that speak to 3 that. 4 10392 The proposal of the Guild is to phase 5 this in over the renewal period. This wouldn't happen 6 for two or three years and, as a result, there is all 7 kinds of ways that a broadcaster could use to readjust 8 the overall spending and, in particular, the overall 9 Canadian spending because right now, average, about 30 10 per cent of the expenditures is on Canadian, but only 11 three and a half per cent is on 7, 8 and 9. 12 10393 Increasing that to seven doesn't mean 13 that your profit drops. It could mean that your 14 expenditures on news and sports and game shows and talk 15 shows would drop by that extra three and a half. I 16 mean that's a factor that's not factored in. 17 10394 Then, finally -- and this I am 18 surprised at because it was very much the Directors 19 Guild idea to try and make this work for the system -- 20 the Directors Guild proposal specifically says that for 21 any additional hours of distinctive drama put in prime 22 time, as proposed, they would be open to a scheduling 23 concession in day part where you would allow more U.S. 24 programming in day part, say a stripped half hour, at a 25 time of the day when less people are watching StenoTran 2228 1 concededly, but Canadian stations right now are having 2 to program talk shows and game shows because, in 3 effect, they have a 65 per cent Canadian content rule 4 in day part by the combination of the rules in quotas. 5 1645 6 10395 That would produce immediate revenue 7 because there is a whole line-up of American programs 8 that are available on the market to go in day part, but 9 there is more time for them on broadcasters' schedules. 10 They are now running these inexpensive, but very poorly 11 performing Canadian programs because they have to fill 12 the quota in day part. 13 10396 Well, if the incentive was, which the 14 CAB itself has proposed and the Directors Guild is 15 supporting in part, that you could for every additional 16 hour of Canadian distinctive drama put in the heart of 17 prime, you are allowed a little bit of leeway in the 18 day part. Again, that factor would need to be taken 19 into account and it was not in this study. 20 10397 COMMISSIONER McKENDRY: Thank you 21 very much. 22 10398 I want to talk to you now about some 23 of the specifics of your particular recommendations, 24 but on my way there let me just ask you a question 25 about a matter that twigged my interest when I was StenoTran 2229 1 reading your written submission on page 21. I take it 2 you give substantial weight to the success of Australia 3 and the U.K. in producing top rated domestic programs. 4 10399 I stopped and I thought about that 5 for a minute and let me put it to you that this could 6 be an apples and oranges comparison. I do have some 7 numbers, but I won't give them to you unless you want 8 me to. 9 10400 It just strikes me that in Australia 10 cable penetration is extremely low. In Britain it is 11 low and, in fact, cable is a relatively new phenomena 12 in Australia. There is no over-the-air spillover from 13 the United States into Australia or the U.K. 14 10401 So that if we had a similar situation 15 here in Canada, where there was very low cable 16 penetration and somehow there was an electronic shield 17 at our border that kept out the spillover, we would 18 probably be more likely to be in a similar situation to 19 Australia and the U.K. So, let me put it to you that 20 it may be an apples and oranges comparison. Do you 21 have any comments on that? 22 10402 MR. KING: I think there is a very 23 clear advantage to having a much bigger preponderance 24 of your own shows and your own networks in your country 25 and to have that kind of a shield. It means your StenoTran 2230 1 audience has grown up with a taste for its own 2 material, it treasures its own actors and knows them 3 well and they become characters in the life of the 4 country. I think it's an advantage as big as the 5 language barrier. 6 10403 But we have to take account of that 7 in establishing our own cultural sovereignty, which is 8 why indeed we are making the proposals we are making. 9 Even then the climate here has been such that the 10 amount of time that we are giving on our schedules to 11 Canadian entertainment and the amount of money that we 12 are paying for it to our producers by way of licence 13 fees and other income is dramatically lower than it is 14 in the other jurisdictions. So, their situation is a 15 much easier one than ours and we have considerable 16 disadvantages coming out of it and they are still a 17 long way behind in supplying quality programs to our 18 audience. 19 10404 COMMISSIONER McKENDRY: Let me now 20 ask you a few questions about your "7 & 7 from 7 to 11" 21 proposal. I take it you probably resisted the 22 temptation to call it the 7/11 proposal, which was the 23 first thing that entered my mind when I read it. 24 10405 MR. KING: It may have played a part 25 in the creative notion. StenoTran 2231 1 10406 COMMISSIONER McKENDRY: Let's talk 2 first about the seven hour component. How did you get 3 to seven hours? 4 10407 MR. KING: It seems to me reasonable 5 to expect an hour a night of Canadian entertainment 6 programming. Seven hours a week is, I would have 7 thought, a minimum. We haven't got it yet, but unless 8 you have a sufficient amount of programming available 9 to an audience it doesn't develop a taste for it. It 10 doesn't begin to know it is that kind of quality of 11 program. You need to have reasonable space on the 12 shelf, on the screen, in the library for the material. 13 So that's the primary reason for it. It raises the 14 level from 10 or 15 per cent to 25 per cent a night and 15 for the week. 16 10408 COMMISSIONER McKENDRY: Do I take it 17 from your oral comments, if I have recalled them 18 correctly, that you feel this is within the realm of 19 doability because the Craigs and Batons and CTV are 20 there or nearly there. Is that correct? 21 10409 MR. KING: I think it is. We have no 22 wish to drive the private broadcasters into bankruptcy. 23 We welcome their profits. We congratulate them on 24 them. What seems to us important is that they do their 25 share in earning the franchise that they are given and StenoTran 2232 1 that share is to spend an amount of money, for example, 2 comparable to that spent in other countries. 3 10410 We think that they can afford it. We 4 think that it's a doable thing. We will do some 5 further work exploring possibilities as to how that may 6 play out. We think they undercut or underplay as they 7 have for a long time what they can make from Canadian 8 programs, particularly distinctive Canadian programming 9 and I think the record shows that the ratings for such 10 programs have improved. They are, for example, as I 11 understand it, markedly better than, for example, 12 Canadian industrial programs with a much lower point 13 count, 6 or 8 point programs. 14 10411 COMMISSIONER McKENDRY: The 7 per 15 cent revenue contribution -- first of all, let me ask 16 you a point about something you just said. You said 17 you have to do some or you will be doing some further 18 work. Will that be work that will become part of the 19 record of this proceeding and your final comments on 20 the proceeding? Is that what you are suggesting? 21 10412 MR. KING: Yes, indeed, and we don't 22 propose to release it through the press. 23 10413 COMMISSIONER McKENDRY: Thank you 24 very much because we would like to be able to have a 25 look at it. StenoTran 2233 1 10414 The 7 per cent revenue contribution 2 required for those seven hours. Again, where did the 7 3 per cent come from? Is there any study or analysis 4 underlying the 7 per cent or is it again in the realm 5 of it seems reasonable under the circumstances? 6 10415 MR. KING: It seems to us it is 7 reasonable. It seems to us that rather than declining, 8 the percentage of money going from the broadcasters 9 should be rising rather than declining, profits have 10 been continuing to increase and for the private 11 broadcasters their market capitalization has doubled. 12 So, it would seem that it is not just the Directors 13 Guild or the Producers Association which thinks that 14 the prospects of the broadcasters are profitable and 15 exciting. The market says so as well. 16 10416 As to the exact number, seven, it 17 seems a useful number to work at and thus chosen. 18 10417 Did you have anything further to add 19 on that, Peter? 20 10418 MR. GRANT: There are some 21 broadcasters that have promised more than seven in 22 English Canada. Some broadcasters, while not at seven, 23 are getting close to it. 24 10419 So, it is an issue in which each 25 broadcaster will have a different take on it and some StenoTran 2234 1 will be much farther behind than others, which makes 2 it, I suppose, more difficult to apply and again I 3 would emphasize that the Directors Guild proposal is 4 for a bench mark, which means that it isn't an 5 automatic regulation. It is applied on a case-by-case 6 basis and you would allow individual broadcasters to 7 argue for in their own circumstances flexibility or 8 they would be higher on one, lower on the other for a 9 time, or they would move in transition. 10 10420 But the approach is to have this as a 11 principal bench mark that would essentially apply to 12 the private broadcast sector and set out a goal that 13 the Commission will look to in renewal hearings to seek 14 to achieve. 15 10421 COMMISSIONER McKENDRY: I expect or 16 suspect that the CAB would say, "Well, this is the old 17 tonnage solution again. You have got to be thinking 18 viewers." Where do viewers come into this? How do you 19 factor viewers into what you are talking about here, or 20 viewership I guess to use the CAB expression? 21 10422 MR. KING: I don't know that I have 22 ever met a film or television maker who doesn't want 23 the largest and doesn't expect the largest possible 24 audience. It is the objective of all of us. 25 10423 I think we also realize that while StenoTran 2235 1 money isn't the only answer to programming, it is very, 2 very difficult to attract an audience with poor 3 quality, underfunded work. 4 10424 We have the difficulty, for example, 5 in the feature film industry where we make feature 6 films very often for less money than many people make 7 movies of the week. We call them feature films. We 8 send them to the theatre. They are shot in less time 9 than a movie of the week and we are surprised that they 10 have sometimes a hard time drawing audiences. 11 10425 Very clearly, the experience through 12 the industry is that if you spend money you have at 13 least the basic condition of drawing an audience. You 14 can't buy an audience. It is absolutely impossible to 15 buy an audience, but you have to spend money to make an 16 attractive product. 17 10426 COMMISSIONER McKENDRY: You may have 18 answered my next question in your reference to the 19 bench mark, but let me clarify this. I take it from 20 your recommendations that with respect to entertainment 21 programs that they are addressed to every English 22 language private conventional TV station regardless of 23 size. The CFTPA, for example, I think applied it to 24 stations with revenues in excess of $10 million, but 25 perhaps you have answered the question I was going to StenoTran 2236 1 pose as to is that fair or does that create a problem 2 by applying it universally to all stations. 3 10427 I think you told me earlier that this 4 is a bench mark and you would look at each case on a 5 separate basis. 6 10428 MR. KING: Yes. I think the needs 7 and the audience for different stations, different 8 station groups vary. To dogmatically push people in a 9 direction they aren't designed to go would be foolish. 10 So, indeed allowance can be made and special variances 11 can be made for particular circumstances. It is a 12 guideline. It is a bench mark. 13 10429 COMMISSIONER McKENDRY: And this 14 would apply to the 7 per cent expenditures of previous 15 years' revenues and for some stations this would be a 16 big, big jump and you are prepared to look at the jump 17 in terms of phasing it in, I take it? 18 10430 MR. KING: As was mentioned earlier, 19 it will take time in any event to phase in, to play 20 in -- yes, to impose it overnight would be a disaster. 21 It has to be done bit by bit as people can work through 22 the experience as the renewals come up and so on. 23 10431 COMMISSIONER McKENDRY: Broadcasters 24 can make equity investments in programs produced by the 25 independent sector, but they can only claim the losses StenoTran 2237 1 on these investments to account as eligible 2 expenditures. As a measure to encourage equity 3 investment in Canadian production, the CAB has proposed 4 that any investment in a Canadian program count as an 5 eligible expense. You seem to be against this 6 proposal. Could you elaborate on why such a proposal 7 wouldn't be beneficial to the system? 8 10432 MR. KING: I am not sure that I have 9 understood the question. That equity investments 10 should be opposed? 11 10433 COMMISSIONER McKENDRY: Broadcasters 12 can make equity investments in programs today, but they 13 can only claim the losses on those investments as 14 eligible expenditures. The CAB is proposing that any 15 investment, that is not just losses, would count as an 16 eligible expense and we take it that you don't agree 17 with that and we are wondering if you could elaborate 18 on that? 19 10434 MR. KING: Peter. 20 10435 MR. GRANT: I guess the issue is that 21 once you allow a broadcaster to treat equity towards 22 their Canadian program expenditure, unless you have 23 some means of monitoring the level of licence fees it 24 will be in its interest to convert a licence fee into 25 equity because equity there is a chance of recoupment. StenoTran 2238 1 Licence fees to rental payment, it is money out of 2 pocket, it never comes back. 3 10436 You do in fact give them credit for 4 unrecouped equity investments, which is fair ball 5 because in that event it was risky. The risk didn't 6 turn out. They lost the money. You are giving them 7 full credit for that. 8 10437 For them to include account for 9 equity when it is recouped, I think in terms of how to 10 police it and it is so difficult to figure out whether 11 the equity is at a fair market level. For example, 12 some equity is backed by back-up revenue guarantees or 13 priority recoupment and so it often reduces the real 14 risk of the equity and it becomes almost a loan. 15 10438 Again, you don't give credits for 16 loans unless they are unrecouped. So, I can understand 17 why broadcasters would love to have this as a potential 18 benefit because they get credited for money that they 19 never really had to spend or they spent quickly and got 20 back quickly. 21 10439 I think it is very important if the 22 Commission wants integrity in the process to make sure 23 what they are measuring is money that went out and 24 didn't come back, so you don't have double counting of 25 it and so forth. StenoTran 2239 1 10440 COMMISSIONER McKENDRY: Thank you 2 very much for answering my questions. Those are the 3 questions I have for you. 4 10441 Thank you, Madam Chair. 5 10442 THE CHAIRPERSON: Commissioner 6 Pennefather. 7 10443 COMMISSIONER PENNEFATHER: Thank you, 8 Madam Chair. 9 10444 Good afternoon. 10 10445 A few very quick questions. On page 11 38 we are talking about feature films, a minimum amount 12 on Canadian feature film and a minimum number of 13 Canadian features. Any suggestion there? Is it 7, 7, 14 7? I am exaggerating, but I was wondering, the very 15 top of the page, if you had an amount, a specific 16 amount. What do you mean by minimum amount? Is it 17 part of the 7 and the 7? 18 10446 MR. KING: Yes, it is. 19 10447 COMMISSIONER PENNEFATHER: And within 20 the 7 and 7 is there a suggested proportion for 21 features? 22 10448 MR. KING: As between features and 23 other drama, no, we have not. They are programs -- 24 they are station groups, channels that are particularly 25 focused on features. There are others who have no StenoTran 2240 1 interest in it. 2 10449 We do feel that because the feature 3 films so seriously need money that there should be 150 4 per cent allowance for them. 5 10450 COMMISSIONER PENNEFATHER: Yes, I 6 have that. 7 10451 In addition, just a quick question 8 and I guess as you say this is the orderly marketplace 9 way of doing things. So, if this is out of order tell 10 me, but just in terms of promoting the feature film in 11 this country is there not a possibility it might be 12 useful to be promoting them on television early in the 13 game to build the following for them, the star system? 14 It is just a thought or a question here. 15 10452 MR. KING: Indeed. There is a great 16 deal of work to be done in greater promotion for 17 feature films. We hope that will be examined and work 18 will come out of it through the Canadian Heritage 19 examination of enhancing the feature film industry. 20 10453 COMMISSIONER PENNEFATHER: So you are 21 flexible on that proposal? 22 10454 MR. KING: Yes. 23 10455 COMMISSIONER PENNEFATHER: On 24 broadcaster access to public funds, you have several 25 alternatives here. On page 43 you speak about limited StenoTran 2241 1 access permitting a small amount of total spending 2 and/or scheduling commitments regarding Canadian 3 programming to be met by self-produced publicly funded 4 programming. 5 10456 In the next place, however, you say 6 restrictions on broadcaster access should be maintained 7 and enhanced. So I am not sure which you really feel 8 more comfortable with? Is it finding solutions for 9 limited access or enhancing the restriction? 10 10457 MR. KING: We are very strongly 11 opposed to broadcaster access to public funds and 12 getting into the production business. It was the bane 13 of film and television 30 years ago. It took a long 14 time to get the diversity and build up an independent 15 production capacity with the kind of diversity it has 16 now. 17 10458 Broadcasters tend to have a terrific 18 leverage and self-dealing is very, very difficult to 19 monitor to police. 20 10459 COMMISSIONER PENNEFATHER: Then the 21 Canadian Media Guild, I don't know if you noticed, made 22 two suggestions with respect to broadcaster access, 23 again looking at this as some possibilities as you were 24 proposing, assuming we might move and allow some 25 flexibility there. The first they have was that StenoTran 2242 1 broadcasters, private and public, be permitted to 2 access a small percentage of the existing broadcast and 3 cable funds, 10 to 15 per cent, which would be set 4 aside specifically for them. 5 10460 The Canadian Media Guild's second 6 proposal was to establish a dedicated fund through a 7 levy on what broadcasters spend to purchase foreign 8 programming. perhaps 3 per cent of these costs. Can 9 you comment on that? 10 1710 11 10461 MR. KING: Levy on what they are 12 going to invest in production? 13 10462 COMMISSIONER PENNEFATHER: Purchase 14 of foreign programming. 15 10463 MR. KING: It would seem to me that 16 would take money away from a place where it should be. 17 It also seems to me that dedicating a chunk to the 18 private broadcasters to become involved in production 19 is rather like letting the camel get its nose in. Once 20 the camel has its nose in, it tends to go all the way. 21 10464 It is very difficult to do it. All 22 the problems of self-dealing are there. It is very, 23 very difficult to do. 24 10465 And I don't see any advantage to it. 25 10466 Of course, any enterprise would like StenoTran 2243 1 to own everything from the cash register in the ticket 2 window all the way back to owning Eastman Kodak and the 3 emulsion on which the film is photographed. It is the 4 objective of all enterprises to become a monopoly. 5 10467 Generally speaking, the greater the 6 competition, the greater the diversity and the greater 7 the failures drop out and the successes are rewarded. 8 And when they become tired, they can move aside. 9 10468 The monopolistic inclinations of 10 enterprises, it seems to me, have to be watched very 11 carefully if you are going to have a healthy culture, a 12 healthy industry and a healthy system. 13 10469 COMMISSIONER PENNEFATHER: Thank you 14 for those comments. 15 10470 Thank you, Madam Chair. 16 10471 THE CHAIRPERSON: Counsel? 17 10472 MR. BLAIS: Thank you. 18 10473 We were talking yesterday or the day 19 before about parallel universes. I understand that the 20 CAB, in light of the exchanges that are occurring out 21 there somewhere, will be filing its report. 22 10474 Considering the discussion earlier, 23 you are suggesting that you will have a reply or a 24 surreply -- I am not sure at which stage we are at at 25 this point. StenoTran 2244 1 10475 Would it be possible for you to file 2 that by the 15th of October? 3 10476 MR. GRANT: This is the response to 4 the CAB expert report? 5 10477 MR. BLAIS: That is correct. 6 10478 MR. GRANT: I think that would be 7 possible, yes. 8 10479 MR. BLAIS: I have been using the 9 15th of October throughout as probably a pretty good 10 indication that the Commission would expect -- and 11 perhaps other parties should be aware -- that the 12 factual record would be pretty much finished by then. 13 So everyone has a fair chance to -- 14 10480 MR. GRANT: We will meet that 15 deadline. 16 10481 MR. BLAIS: Thank you. 17 10482 Your recommendation no. 7 is: 18 "A relaxation of Canadian 19 scheduling requirements in 20 day-time can be considered for 21 broadcasters who increase the 22 amount of first-run 23 under-represented programming 24 shown in peak hours." 25 10483 Could you be a bit more specific as StenoTran 2245 1 to what you actually mean? And how different is this 2 from the CAB's proposal, at 250 percent credit? 3 10484 MR. GRANT: The concept is very 4 similar to the CAB proposal. I think the difference 5 would probably simply be in the amount of credit that 6 would be given. 7 10485 My recollection is that the CAB would 8 like that an additional half hour in prime of 9 distinctive Canadian would trigger an ability to run a 10 half hour across Monday to Friday of a U.S. strip. 11 10486 I think the Guild would want that 12 level to be higher in prime. Maybe an hour would 13 generate a half hour strip. 14 10487 That is the kind of issue that is 15 uniquely for the Commission to weigh. You would have 16 to take into account what would be the impact on day 17 part for each additional incremental hour that you add 18 in prime. 19 10488 But the idea is a good one. The 20 Guild thought that that proposal made a lot of sense. 21 It allows broadcasters to increase their revenue 22 significantly in day part because of the problems of 23 their scheduling quota right now, and that will 24 contribute a bit to the costs that will be involved in 25 adding prime time Canadian drama. StenoTran 2246 1 10489 MR. BLAIS: I appreciate that the 2 Commission has to weigh things. But it needs something 3 to weigh against. 4 10490 You are saying perhaps an hour. Is 5 it an hour or is it an hour and a half? 6 10491 MR. GRANT: I think the thought was 7 that an hour in prime, or the heart of prime, would 8 trigger a half hour Monday through Friday, in day part. 9 10492 MR. BLAIS: Thank you. Those are my 10 questions, Madam Chair. 11 10493 THE CHAIRPERSON: Thank you, Mr. 12 Brand, Mr. King and Mr. Grant. 13 10494 We will take a five-minute break and 14 then hear SPACQ. We will start in the morning with 15 Shaw, because of lack of time. 16 10495 We hope that that is not 17 inconveniencing people beyond being courteous. But 18 that is the reality. It will be 5:20 by the time we 19 resume, and we will be unable to hear two more parties 20 in the remaining time. 21 10496 We will start with Shaw at 9 o'clock 22 tomorrow morning and hear SPACQ in the rest of the 23 allotted time. 24 10497 We will be back in five minutes. 25 --- Short recess at / Courte suspension à 1715 StenoTran 2247 1 --- Reprise à / Upon resuming at 1720 2 10498 LA PRÉSIDENTE: Madame la Secrétaire, 3 s'il vous plaît. 4 10499 Mme BÉNARD: Merci, madame la 5 Présidente. 6 10500 La prochaine présentation sera faite 7 par la Société professionnelle des auteurs et des 8 compositeurs du Québec, M. Bertrand et Mme Bertrand- 9 Venne. 10 10501 LA PRÉSIDENTE: Bonjour, 11 Madame Bertrand-Venne, Monsieur Bertrand. 12 PRÉSENTATION / PRESENTATION 13 10502 M. BERTRAND: Je voudrais commencer 14 par un préambule: rappeler aux gens qu'on fête cette 15 année le 50e anniversaire de la Déclaration universelle 16 des droits de l'homme, et rappeler aussi que le droit 17 d'auteur est un de ces droits humains reconnus par 18 l'ONU. C'est un droit reconnu à une personne physique 19 et non à une personne morale. Notre intervention 20 s'inscrit donc dans cet esprit. Nous souhaitons 21 vivement que le droit d'auteur continue à être 22 considéré comme un droit humain dans l'avenir. 23 10503 Maintenant, en bref, pour vous dire 24 un peu qui nous sommes, la SPACQ, c'est la Société 25 professionnelle des auteurs et des compositeurs du StenoTran 2248 1 Québec. La SPACQ représente les auteurs de chansons et 2 compositeurs de musique québécois, y compris les 3 compositeurs de musique de commande. 4 10504 La SPACQ est un organisme accrédité 5 par la Loi sur le statut de l'artiste, tant au fédéral 6 qu'au provincial. 7 10505 D'abord, qu'est-ce qu'un auteur ou un 8 compositeur? C'est un créateur. Un créateur, c'est 9 quelqu'un qui a le rare talent de pouvoir inventer 10 quelque chose à partir de rien. Un créateur et son 11 oeuvre sont au sommet de la pyramide, la source, la 12 matière première, dont tout le reste dépend et découle. 13 Sans le créateur, pas de chansons, pas 14 d'artistes-interprètes, pas de spectacles télévisés, 15 pas d'émissions de variétés, pas de scénarios, pas de 16 réalisateurs, pas de films ou de téléséries, pas de 17 trames sonores, pas de public, pas de télévision, pas 18 d'industrie culturelle, pas de société distincte, 19 fut-elle québécoise ou canadienne. 20 10506 Sans auteur, il n'y a pas de 21 ministère du Patrimoine, pas de CRTC, pas de Téléfilm, 22 pas de Fonds des câblodistributeurs. Il n'y a pas non 23 plus de télédiffuseurs ou de producteurs, et nous ne 24 sommes pas ici en ce moment à discuter de la politique 25 générale du CRTC sur la programmation de la télévision StenoTran 2249 1 ou de définition à donner à l'expression "émission 2 canadienne", puisqu'il n'y a plus de contenu dont on 3 puisse parler. 4 10507 Le créateur est sur la ligne de 5 front. C'est le créateur, et lui seul, qui sait comment 6 reconstruire quotidiennement la fragile digue 7 culturelle sans cesse menacée par la force considérable 8 de la présence étrangère. C'est au créateur, et à lui 9 seul, qu'on se fie et à qui on demande de faire ce 10 boulet. 11 10508 Le créateur crée de la richesse pour 12 tout le monde dans son sillage: de la richesse 13 économique, bien sûr, mais aussi, et surtout peut-être, 14 de la richesse de coeur, d'âme, et d'émotions. 15 Autrement dit, c'est le créateur qui crée la diversité, 16 la richesse et la différence culturelle de ce pays. 17 10509 Il est important de rappeler que les 18 télédiffuseurs ne sont pas propriétaires des ondes. 19 Les ondes appartiennent au pays et aux citoyens; donc, 20 à vous et à nous. C'est donc un privilège que les 21 citoyens canadiens octroient aux détenteurs de licences 22 par le biais du CRTC. 23 10510 La télévision est considérée comme 24 une industrie culturelle, et profite donc directement 25 de l'exception culturelle négociée dans l'ALÉNA. La StenoTran 2250 1 propriété des postes de télévision et obligatoirement 2 canadienne, par exemple. 3 10511 Les télédiffuseurs opèrent donc dans 4 un marché protégé par les lois du pays. Ce n'est pas 5 du tout le cas des créateurs québécois et canadiens 6 qui, eux, ne bénéficient d'aucune protection, et dont 7 les oeuvres sont en compétition directe et quotidienne 8 avec des créations provenant du monde entier. 9 10512 La Loi de la radiodiffusion, destinée 10 à assurer la présence d'un environnement culturel 11 canadien sur le territoire national, a très bien servi 12 l'intérêt des Canadiens en général, et en particulier 13 celui des télédiffuseurs. Ces privilèges accordés aux 14 entreprises entraînent des devoirs et des 15 responsabilités envers les citoyens canadiens. 16 10513 On ne peut pas, d'une part, plaider 17 qu'on est une industrie culturelle quand il s'agit de 18 jouir des avantages certains qui y sont associés, et 19 d'autre part continuellement exiger de fonctionner sans 20 contraintes, comme une entreprise régulière. 21 10514 Les télédiffuseurs doivent se 22 comporter en bons citoyens corporatifs et défendre la 23 culture de ce pays, sous peine de perdre leur licence 24 et leur statut d'industrie culturelle protégée par 25 l'ALÉNA. D'autres intervenants seraient très heureux StenoTran 2251 1 de prendre leur place et souscrire à toutes les 2 conditions que le CRTC voudrait leur imposer. 3 10515 Imaginons un instant qu'on abolisse 4 totalement les quotas de contenu canadien. En moins de 5 deux, les télédiffuseurs se donnent une programmation 6 semblable à celle des Américains. En moins de deux 7 aussi, ils perdent toute identité propre et sont 8 emportés dans la tourmente, incapables de se démarquer 9 par la différence de leur contenu. 10 10516 En ce qui concerne les exigences de 11 contenu canadien et francophone, nous pensons qu'ils 12 devraient plutôt être définis en fonction de la place 13 qu'on décidera d'accorder aux productions étrangères 14 sur nos écrans. Il nous semble moins humiliant, plus 15 juste et plus élégant, de définir plutôt l'espace que 16 nous allons décider d'accorder aux étrangers qui 17 veulent venir chez nous. 18 10517 En ce qui concerne la politique du 19 CRTC dans le domaine de la chanson francophone, nous 20 vous faisons remarquer que la chanson canadienne 21 d'expression française ne se retrouve pas dans les 22 critères actuels, ce qui fait qu'un poste de télévision 23 francophone pourrait s'acquitter de ses devoirs et 24 responsabilités et remplir tous les critères du CRTC en 25 ne faisant pourtant jouer aucune chanson canadienne StenoTran 2252 1 d'expression française. Il faut que le CRTC remédie à 2 cette situation, car il en va de la bonne santé de 3 l'industrie de l'enregistrement sonore et de tout le 4 star système québécois. 5 10518 Année après année, les télédiffuseurs 6 francophones diminuent le déjà très maigre espace 7 consacré à la chanson, surtout dans les grandes heures 8 d'écoute. Probablement pour la première fois dans 9 l'histoire de la télévision québécoise, aucune longue 10 série régulière de Catégorie 8 n'a été diffusée à la 11 télévision hertzienne pendant la majeure partie de 12 1997-98. 13 10519 Il n'y a qu'une série d'autre 14 catégorie que 8 qui soit principalement consacrée à la 15 chanson, une émission qui s'appelle "Moi ma chanson", 16 mais comme il s'agit d'une série composée de très 17 courts épisodes d'une minute chacun, sa durée annuelle 18 de diffusion est de moins de 30 minutes. Bien sûr, une 19 année ne fait pas une tendance lourde, mais tous les 20 indicateurs statistiques confirment que 1997-98 21 constitue un creux de vague historique en ce qui a 22 trait à la présence de la chanson à la télévision 23 francophone. Il en résulte donc une érosion de plus en 24 plus critique de notre fragile autonomie culturelle et 25 de notre souveraineté nationale. StenoTran 2253 1 10520 Nous pensons par ailleurs qu'il est 2 grand temps que les "radios visuelles", que sont 3 MusiquePlus, Musimax, MuchMusic et compagnies, soient 4 soumises aux mêmes règles et critères que les radios 5 commerciales. Actuellement, les exigences de contenu 6 canadien et de contenu francophone sont respectivement 7 de 30 pour cent et 35 pour cent pour MusiquePlus, de 30 8 et 20 pour cent pour Musimax. 9 10521 Ces "radios visuelles" ont l'avantage 10 non négligeable de ne pas souffrir de la concurrence 11 directe de chaînes américaines, comme MTV ou VH-1, sur 12 le territoire canadien. Ce privilège leur est accordé 13 pour qu'elles puissent mettre en valeur et promouvoir 14 des oeuvres canadiennes. En fait, à cause des quotas 15 trop bas les régissant, la programmation est avant tout 16 composée d'oeuvres et d'artistes provenant de 17 l'étranger. 18 10522 Il y a une synergie, une imbrication, 19 une interdépendance, qui lient inexorablement entre eux 20 télédiffuseurs, radiodiffuseurs, journaux, interprètes, 21 auteurs, compositeurs, producteurs, éditeurs, 22 diffuseurs, propriétaires de salles de spectacles, 23 distributeurs, détaillants de disques, et j'en passe. 24 10523 La diminution de la présence de la 25 chanson sur les écrans de télévision a un effet domino StenoTran 2254 1 dévastateur sur toute la chaîne des intervenants 2 économiques qui vivent de la chanson, y compris les 3 télédiffuseurs eux mêmes, car plus le vedettariat 4 artistique est développé, plus cela profite à toutes 5 les composantes. Le contraire est hélas tout aussi 6 vrai. 7 10524 La véritable bataille n'est pas entre 8 l'industrie de la télévision ou entre l'industrie de la 9 musique canadienne. Le véritable danger, l'ennemi, il 10 se trouve au sud de la frontière. Nous sommes les 11 voisins du pays le plus riche et le plus puissant du 12 monde, et ce voisin comprend parfaitement bien, lui, et 13 depuis longtemps, la formidable arme psychologique, 14 économique et sociale que représente la culture, 15 véritable cheval de Troie moderne. 16 10525 Déjà, avec le libre-échange, ça a 17 tout pris pour qu'on puisse introduire une exception 18 culturelle dans le contrat et, depuis, les Américains 19 ne cessent d'essayer de faire sauter ces exceptions par 20 tous les moyens et dans tous les pays. Ils ont d'abord 21 essayé lors de la négociation de l'accord du 22 libre-échange nord-américain, l'ALÉNA, puis par le 23 biais du GATT, ensuite via l'Organisation mondiale du 24 commerce, l'OMC, et ils reviennent maintenant à la 25 charge avec l'Accord multilatéral sur les StenoTran 2255 1 investissements, l'AMI. 2 10526 Nous sommes donc assiégés, en 3 perpétuel danger d'assimilation culturelle, et, comme 4 tous les pays du monde, menacés de disparition en tant 5 que société et entité politique autonome. 6 10527 C'est dans ce contexte qu'il faut 7 comprendre et analyser la situation, et imposer 8 courageusement les correctifs qui s'imposent. Nous 9 devons donc nous serrer les coudes et tout mettre en 10 oeuvre pour augmenter notre indépendance culturelle, en 11 augmentant le contenu culturel canadien sur nos ondes. 12 C'est dans notre intérêt à tous. Il faut réaffirmer 13 l'importance de la diversité culturelle, et le droit à 14 la différence de tous les pays du monde. 15 10528 On parle de contenu, de propriété 16 intellectuelle, de territorialité des droits, et nous 17 espérons vivement que vous n'oublierez pas les 18 créateurs de contenu, les industries culturelles, dans 19 vos prières. 20 10529 Nous tenons à vous rappeler que c'est 21 pour cela que le CRTC existe: pour créer et défendre un 22 espace culturel canadien sur le territoire canadien. 23 10530 Merci de votre attention. 24 10531 J'aimerais céder la parole à ma 25 directrice générale, Francine Bertrand-Venne. StenoTran 2256 1 10532 Mme BERTRAND-VENNE: J'aimerais aussi 2 souligner que les membres de la SPACQ sont aussi... il 3 n'y a pas que la chanson, mais il y a les compositeurs 4 de la musique originale, des oeuvres audiovisuelles, 5 que vous retrouvez à la télévision. 6 10533 Nous avons été accrédités en vertu de 7 la Loi canadienne sur le statut de l'artiste, qui nous 8 permet de négocier les conditions de la prestation de 9 services de la composition de l'oeuvre originale 10 musicale dans tout programme de télévision. De plus, 11 nous sommes à négocier en vertu de la Loi québécoise 12 provinciale avec l'APFTQ, les producteurs indépendants. 13 10534 Je voulais que vous sachiez que nous 14 sommes tout à fait pertinents de finalement nous 15 préoccuper de l'utilisation de l'oeuvre musicale et de 16 sa création dans la télévision. Il y a donc tout le 17 volet des programmes de télévision qui nous préoccupe. 18 10535 Je voudrais aussi vous 19 sensibiliser... évidemment ici les gens se présentent 20 pour parler d'affaires, des plans d'affaires, et nous 21 sommes ici pour vous dire, oui, nous sommes ici pour 22 discuter de culture et de sa survie, mais nous sommes 23 ici pour vous dire est-ce que les créateurs de ce pays 24 peuvent vivre de cette merveilleuse industrie 25 télévisuelle? StenoTran 2257 1 10536 Les créateurs vivent de deux choses: 2 de la prestation de services, quand un producteur 3 commande une oeuvre, qu'il soit diffuseur-production 4 public ou privé, ou qu'il producteur privé, il commande 5 à un auteur-compositeur une oeuvre originale pour son 6 film ou son programme de télévision. Ça contribue à 7 faire, pour ce producteur, un produit qui est 8 commercialisable. Il s'agit de savoir ici est-ce que 9 ces gens sont suffisamment respectés, est-ce qu'ils 10 sont suffisamment rémunérés, est-ce qu'ils profitent de 11 l'essor de cette industrie? 12 10537 J'aimerais vous sensibiliser au fait 13 que la production privée versus la production publique, 14 bien, vous ne serez pas étonnés que demain il y a une 15 première historique: la SPACQ est la seule association 16 de créateurs musicaux au Canada de s'être prévalue de 17 la loi canadienne, et donc nous signerons demain notre 18 première entente collective avec Radio-Canada, dans les 19 bureaux de Radio-Canada à Montréal, et c'est tout à 20 l'honneur de notre diffuseur public de l'avoir fait en 21 quatre mois, dans une négociation soutenue, et d'avoir 22 respecté intégralement le droit d'auteur. 23 10538 Comme diffuseurs, ils n'ont jamais 24 demandé d'abaissement de paiements, ni à la SOCAN, ni à 25 la SODRAC, qui gèrent le droit de reproduction des StenoTran 2258 1 oeuvres musicales québécoises, en général. 2 10539 C'est très important ce que je vous 3 dis. Je ne veux pas faire ici d'éloge outre mesure. Il 4 y a des problématiques qui se regroupent sur l'ensemble 5 des diffuseurs et de la production, quant au quota, 6 quant au pourcentage attribuable, par exemple, aux 7 dramatiques par rapport aux variétés. 8 10540 J'aimerais suggérer, dans cet état 9 d'esprit, que le 150 pour cent qui est attribuable à 10 des téléséries, par exemple, en dramatiques, soit 11 attribuable à des émissions de variétés, parce que la 12 chanson est un parent pauvre de la télévision, et on a 13 noté que le compositeur de l'oeuvre originale d'un 14 programme de télévision reçoit ou accorde au producteur 15 un pourcentage, un point, de contenu canadien, tandis 16 que dans la variété, c'est l'artiste-interprète qui 17 obtient le point, ou qui octroie le point au 18 producteur. Ce qui veut donc dire qu'on encourage un 19 artiste-interprète. 20 10541 Ça va bien quand un 21 artiste-interprète peut chanter ses propres oeuvres, sa 22 propre création, mais il arrive souvent qu'un 23 artiste-interprète, et on le sait, dans les postes 24 privés au Québec, on incite l'artiste-interprète 25 souvent à jouer du répertoire étranger. Nos amis du StenoTran 2259 1 CAB l'ont dit lors des audiences de la radio, "Canadian 2 music is no good", et la musique francophone fait fuir 3 les auditeurs francophones des stations francophones. 4 10542 Nous sommes ici pour vous dire rien 5 n'est moins vrai. Vous avez vu de grandes compagnies 6 de producteurs privés qui s'enorgueillissent d'avoir 7 créer du contenu canadien. Il y a définitivement de 8 grandes affaires qui se font actuellement au Canada, 9 nous en sommes très fiers, mais je crois que tout ça 10 est parti d'un diffuseur public qui a eu l'obligation 11 de faire du contenu canadien à l'origine et qui, au 12 Québec, assurément, a créé une habitude d'écoute chez 13 les Québécois qui fait en sorte que cette habitude 14 d'écoute profite grandement et aux diffuseurs privés et 15 aux producteurs privés. 16 10543 Quand on crée une habitude... je 17 viens d'entendre nos collègues canadiens-anglais, les 18 réalisateurs. Je constate que les problématiques ne 19 sont pas les mêmes au Canada anglais, mais chez nous au 20 Canada français, les Québécois écoutent majoritairement 21 la télé francophone, produite par des gens d'ici, par 22 des gens du Québec, et c'est beaucoup grâce à 23 Radio-Canada qui, en respectant les créateurs... et je 24 pense ici pas seulement aux musiques, mais aux 25 réalisateurs, aux scénaristes, qui ont créé une StenoTran 2260 1 télévision qui soit bien québécoise, qui soit bien 2 fréquentée par les gens de notre pays. 3 10544 Donc, en quelque part c'est important 4 que vous considériez que nos amis les producteurs, 5 diffuseurs privés, je crois que la SOCAN va comparer 6 devant vous, ont obtenu des grands rabais de paiements 7 de droits d'auteur, et je vous dis bien franchement que 8 c'est important que vous soyez conscients de toutes ces 9 problématiques pour le créateur, parce que... 10 10545 Mme BÉNARD: Madame Bertrand-Venne, 11 est-ce que vous pourriez résumer, s'il vous plaît? 12 10546 Mme BERTRAND-VENNE: C'est tout. 13 10547 Je cède la parole aux commissaires. 14 10548 LA PRÉSIDENTE: Madame 15 Bertrand-Venne, les problèmes que vous venez de 16 souligner sont des problèmes de droits, mais qui 17 évidemment s'insèrent dans toute la thématique 18 télévisuelle aussi. 19 10549 Votre inquiétude principale que vous 20 voulez nous apporter dans le contexte de cette audience 21 est l'absence de programmes variétés à la télévision, 22 ou au moins une baisse. J'ai lu la soumission de 23 l'ADISQ, et caetera. Est-ce qu'il y a, à votre avis... 24 et vous avez fait sans doute une recherche à laquelle 25 je pense on se réfère dans un autre contexte pour StenoTran 2261 1 examiner l'absence ou la baisse des programmes variétés 2 à la télévision. 3 10550 Rappelez-moi quel est le cheminement 4 ou le changement, ou la baisse, de cette catégorie. À 5 votre avis, on y arrivait mieux déjà. 6 10551 M. BERTRAND: Oui. Je n'ai pas 7 l'étude avec moi, mais... 8 10552 LA PRÉSIDENTE: Mais à peu près? 9 10553 M. BERTRAND: ... je sais qu'en 10 quatre-vingt... 11 10554 Mme BERTRAND-VENNE: Une baisse de 12 80 pour cent. 13 10555 M. BERTRAND: Oui. C'est énorme 14 comme baisse. 15 10556 LA PRÉSIDENTE: Depuis quand? 16 10557 M. BERTRAND: Depuis 1994 ça a 17 diminué. 18 10558 LA PRÉSIDENTE: Dans une période de 19 quatre ans. 20 10559 M. BERTRAND: Oui. 21 10560 LA PRÉSIDENTE: À quoi attribuez-vous 22 cette baisse? Est-ce que c'est l'oeuf et la poule, ou 23 est-ce qu'il y a un contexte spécifique, ou est-ce que 24 c'est la façon qu'on attribue les fonds, ou... 25 10561 Si je me souviens bien, l'ADISQ StenoTran 2262 1 suggère que ce sont nos définitions qui sont un 2 problème et qu'elles devraient être... je pourrais en 3 discuter avec eux, mais vous avez sans doute lu leur 4 soumission? 5 10562 Mme BERTRAND-VENNE: C'est que nous, 6 la façon dont on voit ça c'est que les incitatifs du 7 CRTC qui ont été donnés aux dramatiques n'ont pas été 8 donnés à la variété. C'est un peu dans ce sens-là. 9 Quand on lu que 150 pour cent était attribuable à des 10 dramatiques, on ne retrouve pas ça du côté des 11 émissions de variétés, "variétés" étant compris comme 12 de l'exécution publique... enfin, entendre des artistes 13 chanter. 14 10563 Vous savez, les producteurs parlent 15 beaucoup de la culture mais ne la pratiquent plus, et 16 ça aussi c'est une grande constatation qu'on a faite. 17 10564 Le CRTC peut nous aider en ce sens 18 qu'il peut affecter et finalement créer des incitatifs 19 pour qu'il y ait de la production dans ce secteur. 20 10565 LA PRÉSIDENTE: Et vous croyez que 21 c'est surtout ça qui a encouragé les télédiffuseurs 22 à... 23 10566 Mme BERTRAND-VENNE: Ça ne va 24 certainement pas nuire. Il y a toute une 25 problématique; évidemment ils vont nous objecter la StenoTran 2263 1 rentabilité. Ce sont des hommes d'affaires. Ils 2 pensent à 50 choses et ils décident, eux, ce qui est à 3 la mode. Ils ont quand même de grandes libertés. Ils 4 ont des préoccupations économiques, et c'est sûr qu'ils 5 ont leur façon de voir les choses, mais on espère que 6 dans un univers réglementé... c'est justement pour ça 7 qu'on se présente devant vous. C'est qu'on s'attend 8 que tous les éléments du système puissent profiter de 9 la radiodiffusion, et en télévision, il faudrait bien 10 que ce soit aussi la chanson qui soit présente, ou 11 enfin que la musique populaire soit plus présente sur 12 nos ondes. 13 10567 LA PRÉSIDENTE: Ça inclut la musique 14 aussi. Ce n'est pas seulement... un programme de 15 variétés pourrait inclure la musique aussi. 16 10568 Mme BERTRAND-VENNE: Absolument. 17 10569 M. BERTRAND: Oui. La musique 18 instrumentale aussi. 19 10570 LA PRÉSIDENTE: Est-ce que ça 20 inclurait des programmes dont on parle du côté Canada 21 anglais ou télévision de langue anglaise, des 22 programmes qui visent à projeter des personnalités, des 23 stars, et caetera, à votre avis? 24 10571 Mme BERTRAND-VENNE: Mais 25 certainement. StenoTran 2264 1 10572 LA PRÉSIDENTE: En même temps. 2 10573 M. BERTRAND: Oui. 3 10574 Mme BERTRAND-VENNE: C'est indéniable. 4 10575 LA PRÉSIDENTE: Même si ça n'incluait 5 pas la composante musique. Même si c'était simplement 6 un genre interview, mais dans le genre 7 divertissement... 8 10576 M. BERTRAND: Ça, on en a eu 9 beaucoup. On en a, de ça, mais ce n'est pas... ce sont 10 des émissions où on met en valeur le vedettariat, le 11 star system. On s'intéresse... 12 10577 LA PRÉSIDENTE: Plutôt que la 13 chanson. 14 10578 Mme BERTRAND-VENNE: Voilà. 15 10579 M. BERTRAND: Oui. On s'intéresse à 16 l'individu plutôt qu'à l'oeuvre, et nous, on est une 17 association de créateurs, donc ce qu'on veut c'est que 18 la chanson soit entendue à la télévision et qu'il y ait 19 un engouement qui fasse que ça fasse boule de neige et 20 que ça puisse avoir des répercussions dans le domaine 21 du spectacle vivant aussi, parce que, parce qu'il n'y a 22 plus d'émissions de télévision traditionnelles comme il 23 y en a eues à une autre époque... 24 10580 LA PRÉSIDENTE: Ça ne mousse pas 25 l'industrie. StenoTran 2265 1 10581 M. BERTRAND: ... ça a des 2 implications sur toute la chaîne au complet, et donc ce 3 serait important que les télévisions fassent leur 4 effort. 5 10582 Ce que je disais dans le mémoire 6 aussi est que ça va servir... tout le monde est prêt à 7 faire le jeu, et c'est un problème. Évidemment ça 8 coûte cher, faire des émissions de variétés, avec des 9 musiciens, des équipes. Il faut peut-être renouveler 10 la formule aussi. 11 10583 Peut-être que le CRTC pourrait 12 trouver une façon, entre autres, en augmentant la 13 valeur du pointage pour l'oeuvre ou le contenu de la 14 chanson par rapport aux oeuvres dramatiques. Si les 15 points qui étaient accordés pour le contenu canadien 16 étaient plus élevés, ce serait déjà une façon de 17 contribuer, votre façon de contribuer. 18 10584 Il faudrait peut-être penser aussi à 19 des façons de trouver du financement. Peut-être qu'on 20 n'est pas au bon forum, mais il y a des argents, des 21 banques culturelles peut-être qu'il faudrait qu'il y 22 ait des enveloppes qui soient obligatoirement dépensées 23 dans un domaine de variétés de chansons. 24 10585 LA PRÉSIDENTE: Est-ce que ce sont 25 des incitatifs qui ont été discutés dans le projet... StenoTran 2266 1 10586 Mme BERTRAND-VENNE: Le groupe de 2 travail de la chanson, vous voulez dire? 3 10587 LA PRÉSIDENTE: Oui. Est-ce qu'il y a 4 d'autres incitatifs qui ont été discutés au Québec, 5 dans le contexte assez récent, d'examiner toute cette 6 problématique? 7 10588 Mme BERTRAND-VENNE: Ça a été ciblé 8 comme un des grands problèmes, en tout cas. 9 10589 M. BERTRAND: Oui. On siège en ce 10 moment... 11 10590 LA PRÉSIDENTE: C'est encore... 12 10591 M. BERTRAND: On est sur le point de 13 rédiger le rapport final, mais c'est sûrement une des.. 14 enfin, tout le monde est d'accord pour dire qu'il y a 15 un problème. Les télédiffuseurs eux mêmes sentent 16 qu'il y a quelque chose d'anormal. Ils voudraient eux 17 aussi qu'on revienne à une formule où la chanson serait 18 plus présente. 19 10592 LA PRÉSIDENTE: Où ça existe. 20 10593 Est-ce que le fait qu'il y a 21 maintenant des chaînes spécialisées qui font des vidéos 22 24 heures par jour remplace un peu ce genre de 23 programmes, ou... 24 10594 Je vois que vous suggérez que leurs 25 exigences au niveau de la programmation canadienne des StenoTran 2267 1 dépenses soient plus élevées. 2 10595 M. BERTRAND: Surtout la 3 programmation comme telle. La quantité d'oeuvres 4 canadiennes et québécoises ou, enfin, d'expression 5 française, soit plus élevée, parce qu'en ce moment ils 6 jouent, grosso modo, peut-être 15 pour cent de leur 7 programmation et de la chanson canadienne d'expression 8 française. Pour le reste, c'est de la musique 9 étrangère. Donc, c'est une très très faible vitrine 10 par rapport à ce qu'on a réussi à obtenir en radio, par 11 exemple. 12 10596 À mon point de vue, et d'après nous, 13 c'est une radio visuelle, que MusiquePlus ou Musimax, 14 donc ils devraient être tenus aux mêmes règles, ou ça 15 devrait se rapprocher de façon beaucoup plus 16 significative des exigences de contenu auxquelles les 17 radios sont déjà tenues. Je pense que ça aiderait 18 beaucoup. 19 10597 Par exemple, il y a une émission qui 20 s'appelle "Fax 57". C'est toujours, toujours, la 21 promotion des artistes américains ou étrangers, ou à 22 peu près, presqu'exclusivement. À un moment donné, ça a 23 un effet d'entraînement. C'est du non-dit, c'est 24 subliminal, mais les gens s'identifient à tout ce qui 25 vient d'ailleurs plutôt qu'à ce qui vient d'ici, et la StenoTran 2268 1 culture d'ici devient parent pauvre par rapport à ce 2 qui vient d'ailleurs. Nul n'est prophète dans son 3 pays, et c'est la preuve qui est en train de se faire 4 jour après jours à travers la façon de procéder de 5 MusiquePlus et de Musimax. 6 10598 Je pense qu'ils ont un rôle important 7 à jouer, surtout auprès du jeune public, et c'est le 8 jeune public qui va être le public adulte de demain. 9 Pour le moment, on n'est pas assez présent, d'après 10 nous, dans cette forme de télévision, qui forme 11 l'écoute et le public de demain pour la chanson de 12 demain. 13 10599 Je pense que MusiquePlus ou les 14 radios spécialisées, ce que j'appelle les radios 15 visuelles...on devrait revoir leur mandat et être 16 beaucoup plus exigeant dans le travail qu'ils ont à 17 faire. 18 10600 LA PRÉSIDENTE: Mais généralement 19 aussi, je suppose que ces vidéo clips très courts ne 20 sont pas exactement le genre de programmation que vous 21 envisagez quand vous parlez de programmation de 22 variétés. 23 10601 M. BERTRAND: Non. 24 10602 LA PRÉSIDENTE: C'est autre chose. 25 10603 M. BERTRAND: Il y a un autre StenoTran 2269 1 problème. Je pense que les télédiffuseurs 2 traditionnels se disent, on n'a pas besoin de faire ça 3 maintenant, parce que MusiquePlus le fait, Musimax le 4 fait, on n'a plus ce mandat-là à soutenir. Mais dans 5 les faits, voir un artiste en vidéo clip jour après 6 jour, c'est une façon de faire une promotion, mais ça 7 ne vend pas le spectacle sur scène, ça ne donne pas le 8 contact privilégié qu'on peut avoir avec un artiste 9 quand il y a une interview, quand on le voit jouer de 10 la guitare, quand il raconte sa vie, quand il raconte 11 comment il a écrit ses chansons. 12 10604 Il y a moyen d'avoir des interactions 13 dans une émission de variétés. Par exemple, l'auteur 14 de la chanson qui vient chanter avec l'interprète que 15 tout le monde a entendu à la radio. Il faut trouver 16 des façons d'interaction et une façon de présenter les 17 chansons et ceux qui les font de façon à ce que ça 18 devienne intéressant, et qu'on apprenne des choses 19 nouvelles, mais à travers la chanson et non pas à 20 travers des émissions où c'est des quiz et la chanson 21 sert de faire valoir un quiz. C'est plutôt le 22 contraire qui doit se faire maintenant. C'est de 23 mettre la chanson en évidence, la chanson en vedette, 24 et les artistes et les créateurs qui la font aussi 25 soient remis à la place qui leur revient. StenoTran 2270 1 10605 Je pense que c'est vers ça que les 2 télédiffuseurs devraient... et je pense que tout le 3 monde veut le faire. Je pense qu'il y a de la bonne 4 volonté de toute... j'ai bon espoir que c'est vrai, que 5 les gens veulent faire plus de variétés à la 6 télévision. Il s'agit de trouver les moyens, et les 7 encouragements nécessaires, et peut-être que justement 8 le pointage augmenté que vous... 9 10606 LA PRÉSIDENTE: Ce serait un 10 incitatif. 11 10607 M. BERTRAND: Ça pourrait aider, je 12 pense. 13 10608 Mme BERTRAND-VENNE: Et de le 14 rapporter à l'auteur-compositeur de la chanson... 15 10609 M. BERTRAND: Oui, au contenu. 16 10610 Mme BERTRAND-VENNE: ... et pas 17 seulement à l'artiste-interprète. 18 10611 M. BERTRAND: Encore là, je pense 19 que... 20 10612 Mme BERTRAND-VENNE: C'est un critère 21 qu'on a en radio, ça. 22 10613 M. BERTRAND: Oui. En général, on 23 pense que le critère fondamental qui fait que l'oeuvre 24 est canadienne, ou que le produit, si on veut employer 25 des termes de l'industrie, que le produit est canadien, StenoTran 2271 1 c'est d'avoir avant tout le contenu, donc, la création 2 comme telle -- l'auteur, le scénariste, dépendant du 3 domaine dont on parle; l'auteur, le compositeur, le 4 scénariste, le réalisateur -- ce sont les éléments 5 créateurs qui font que l'oeuvre est canadienne. Donc, 6 ça devrait être privilégié, à plus forte raison dans le 7 domaine de la chanson parce que là, carrément, c'est le 8 point principal qui fait que la chanson est canadienne. 9 Ça devrait être considéré comme étant la composition, 10 comme ça l'est, comme disait Francine Bertrand-Venne, 11 en radio. 12 10614 Le critère est reconnu en radio; il 13 devrait l'être aussi en télévision pour la chanson. 14 10615 LA PRÉSIDENTE: C'est intéressant de 15 voir... je ne me souviens plus où, mais dernièrement 16 j'ai vu un de ces anciens programmes variétés avec 17 Félix Leclerc, et je pense Jacques Normand. 18 10616 Mme BERTRAND-VENNE: Oui, probablement 19 lors du décès de Jacques Normand... 20 10617 LA PRÉSIDENTE: C'est vrai qu'on 21 manque ça. Ce ne serait pas la même chose, parce que 22 ce sont des artistes différents, mais quand même 23 c'était... 24 10618 M. BERTRAND: Et vous avez 25 probablement vu cette émission-là à Canal D ou à une StenoTran 2272 1 série spécialisée. 2 10619 LA PRÉSIDENTE: Pas Canal D, parce 3 que je ne le reçois pas, mais de toute façon j'ai vu ça 4 à la télévision. Ça m'a attiré. 5 10620 Mme BERTRAND-VENNE: Je voudrais aussi 6 attirer votre attention que quand on relègue la chanson 7 à des stations spécialisées, bientôt il y aura une 8 multitude d'offres, et il y aura des bouquets de 9 services. À ce moment-là, on peut banaliser, ou on 10 peut rendre la culture... 11 10621 M. BERTRAND: Marginaliser. 12 10622 Mme BERTRAND-VENNE: Marginaliser une 13 certaine facette de la culture. Il s'agit, quand on 14 est diffuseur, d'avoir une vision beaucoup plus large 15 de la culture, et c'est aussi à ce niveau-là qu'on fait 16 l'intervention. 17 10623 LA PRÉSIDENTE: Vous voulez dire la 18 question de se fier sur les services spécialisés... 19 10624 Mme BERTRAND-VENNE: Oui. 20 10625 LA PRÉSIDENTE: ... et de vider les 21 ondes hertziennes de certaines... 22 10626 M. BERTRAND: Voilà; responsabilités 23 traditionnelles. 24 10627 LA PRÉSIDENTE: Et surtout évidemment 25 au Québec, dans la région de Montréal, où la StenoTran 2273 1 câblodistribution n'a pas une pénétration assez élevée, 2 il y a quand même une proportion assez grande de la 3 population qui ne recevrait pas les services, ou qui 4 n'achèterait pas le bouquet, est votre point. 5 10628 Mme BERTRAND-VENNE: Oui. 6 10629 LA PRÉSIDENTE: Donc, ce serait... 7 10630 Mme BERTRAND-VENNE: Ils en 8 achèteraient peut-être, mais je veux dire que c'est 9 important qu'on soit... 10 10631 LA PRÉSIDENTE: Ce serait relégué 11 plutôt que... 12 10632 Mme BERTRAND-VENNE: ... dans une 13 vitrine de diffuseurs conventionnels aussi. 14 10633 LA PRÉSIDENTE: Que de faire partie 15 de la télévision conventionnelle. 16 10634 Mme BERTRAND-VENNE: Oui, tout à fait, 17 parce que je crois que la télévision en téléromans et 18 en dramatique a fait ses preuves. Un star system, nous 19 autres au Québec, on en a un. Les artistes connus, on 20 les a. On a fait une preuve de ce côté-là, et il faut 21 puiser dans... 22 10635 LA PRÉSIDENTE: Et vous voulez que... 23 10636 Mme BERTRAND-VENNE: Il faut puiser 24 dans ce succès. 25 10637 LA PRÉSIDENTE: Quand vous parlez, au StenoTran 2274 1 paragraphe 2, je crois, à la deuxième page de votre 2 soumission, où vous parlez de quotas: Les quotas 3 doivent demeurer, doivent être obligatoires aux grandes 4 heures d'écoute. Vous parlez ici en général de 5 certains genres de programmation? 6 10638 Mme BERTRAND-VENNE: Oui. Absolument, 7 parce qu'il me semble que ça doit être proposable à 8 tous, parce que j'écoutais mes collègues de différents 9 secteurs, que ce soit producteurs privés, diffuseurs ou 10 producteurs privés, ou le diffuseur/producteur public, 11 en quelque part il me semble que les quotas canadiens 12 devraient être proposables à tous, et dans ce sens-là 13 ce devrait être tout à fait... 14 10639 LA PRÉSIDENTE: Là, vous parlez pour 15 tout le Canada? 16 10640 Mme BERTRAND-VENNE: Oui. 17 10641 LA PRÉSIDENTE: Parce qu'au Québec, 18 on n'a pas senti à date le besoin de faire plus que de 19 dire 60-50, et c'est de beaucoup dépassé évidemment les 20 heures de diffusion de programmation canadienne, même 21 aux heures de grande écoute, qui sont beaucoup plus 22 élevées, vraiment, que l'exigence. 23 10642 Je suis un peu alarmée par le fait 24 que vous aimeriez qu'on envisage qu'un pourcentage des 25 sommes d'argent qui proviennent des licences et qui StenoTran 2275 1 servent au fonds du roulement du CRTC soit retourné au 2 soutien du financement de Radio-Canada, dans le fonds 3 consolidé du Canada. Vous n'avez pas l'intention de 4 nous enlever nos salaires? 5 10643 Mme BERTRAND-VENNE: Non, non, pas du 6 tout. C'est le surplus que génèrent les licences. 7 10644 Il me semblait que tout ce que vous 8 avez entendu précédemment est que cette grande 9 polémique entre le diffuseur public et les diffuseurs 10 privés et les producteurs privés provient du fait qu'au 11 Canada on a décidé que la radio d'État, on n'allait pas 12 la financer plus que ça. 13 10645 Le danger est de voir le diffuseur 14 public être obligé de glisser vers des pratiques 15 commerciales et obligé de faire une programmation et 16 piger, finalement, être en concurrence avec les 17 diffuseurs privés. Il me semblait que ce serait une 18 bonne idée d'être capable de pouvoir encourager un 19 certain soutien d'une autre façon, et de penser à des 20 façons de faire, puisque en quelque part il y a 21 peut-être des argents qui pourraient servir à la 22 culture qui vont au fonds consolidé des pays. Voilà. 23 10646 LA PRÉSIDENTE: Je suis rassurée, 24 parce que j'aurais eu du mal à rapporter à Mme Bertrand 25 qu'il fallait... StenoTran 2276 1 10647 Mme BERTRAND-VENNE: Non, non, non. 2 Ce n'était pas mon propos. C'était dans... 3 10648 LA PRÉSIDENTE: ... couper son budget 4 pour le donner à Radio-Canada. 5 10649 Mme BERTRAND-VENNE: C'était dans ce 6 qui pouvait excéder les besoins du CRTC. 7 10650 LA PRÉSIDENTE: Je vous remercie. 8 10651 Conseiller juridique. 9 10652 Me BLAIS: J'ai une seule question, 10 et c'est un peu pour avoir votre réaction à une 11 proposition de l'ADISQ. C'est au paragraphe 61 des 12 recommandations de l'ADISQ. Je sais que vous ne l'avez 13 peut-être pas devant vous, donc je vais vous lire ce 14 qu'ils proposent. 15 10653 Ils disent qu'au moins 5 pour cent 16 des ressources du programme de participation au capital 17 et du programme de droit de diffusion du CTCPEC soit 18 alloué aux émissions de catégorie 8, et que ce serait 19 un objectif à atteindre sur une période de deux ans. 20 10654 Que pensez-vous de cette 21 recommandation? 22 10655 M. BERTRAND: C'est un petit peu ce 23 que j'essayais de dire tout à l'heure, de façon 24 peut-être un peu moins claire, un peu plus ambiguë, 25 mais oui, c'est une réflexion qu'on a partagée StenoTran 2277 1 ensemble, dans le fond, à travers le groupe de travail 2 sur la chanson québécoise. C'est un peu ça, je pense. 3 C'est de définir un montant à travers les argents qui 4 sont déjà disponibles, mais qui soit attribué de façon 5 prioritaire ou obligatoire à la production d'émissions 6 de Catégorie 8, parce qu'il n'y en a plus. Il n'y en a 7 pas en ce moment, ou il y en a peut-être une qui vient 8 de commencer. 9 10656 La télévision en ce moment... enfin, 10 la chanson est parent pauvre à la télévision 11 traditionnelle, et ça a un impact à tous points de vue: 12 sur la vente de disques, sur l'achat de billets de 13 spectacles. 14 10657 Je pense qu'il y a un problème, mais 15 la roue doit tourner, et tous les intervenants... il 16 faut huiler la roue qui grince, et je pense que la 17 télévision est la roue qui boitte en ce moment, et les 18 autres morceaux devraient repartir. Je pense que tout 19 le monde peut y gagner en ayant des émissions de 20 qualité dans les grandes heures d'écoute à la 21 télévision. 22 10658 Le public va retrouver ses artistes, 23 et ça va se répercuter sur les ventes de disques, sur 24 les spectacles. Donc on est d'accord finalement avec 25 cette idée-là. StenoTran 2278 1 10659 Me BLAIS: C'est très bien. 2 10660 Merci. Ce sont mes questions. 3 10661 LA PRÉSIDENTE: Nous vous remercions, 4 Madame Bertrand-Venne, Monsieur Bertrand, et bon retour 5 à Montréal. Vous rentrez ce soir? 6 10662 M. BERTRAND: Oui. On n'a pas les 7 moyens d'avoir une chambre d'hôtel. 8 10663 Mme BERTRAND-VENNE: On était bien 9 contents de passer aujourd'hui. 10 10664 LA PRÉSIDENTE: C'est bien. Je vous 11 voyais assis là. 12 10665 Nous avons siégé souvent jusqu'à même 13 8 h 00, alors ça nous... 14 10666 M. BERTRAND: Vous allez pouvoir vous 15 reposer. 16 10667 LA PRÉSIDENTE: Nous essayons 17 d'accommoder autant que possible. 18 10668 M. BERTRAND: On vous souhaite un bon 19 appétit, un bon souper, un bon dodo. 20 10669 LA PRÉSIDENTE: Merci. Bonsoir. 21 10670 Nous reprendrons demain matin à 22 9 h 00. We will be back tomorrow morning at 9:00. 23 24 25 StenoTran 2279 1 --- The hearing adjourned at 1752, to resume on 2 Friday, October 2, 1998, at 0900 / L'audience 3 est ajournée à 1752, pour reprendre le 4 vendredi 2 octobre 1998, à 0900 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 StenoTran
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